Copper poised for fifth weekly drop on rising inventory dollar
Sunday, 04 Oct 2009
Bloomberg reported that copper fell for a second day in Asia and is poised for its 5th weekly decline as rising stockpiles and the dollar’s recovery reduced investor demand.
Stockpiles of the metal monitored by London Metal Exchange warehouses climbed to 346,050 tonnes, the highest level since May 19th 2009. Copper slid 0.3% this week as a trade weighted index of the dollar advanced for a second week reducing the appeal of commodities priced in the US currency.
Mr David Thurtell a Citigroup Inc analyst in London said that “It appears that central bankers are becoming increasingly uneasy over the falling US dollar. The rising US dollar in turn is having an impact on financial market participants’ preparedness to put on new risk trades.”
London Metal Exchange copper for delivery in 3 months fell as much as 0.8% to USD 5,935 per tonne and traded at USD 5,970 per tonne at 12:25 AM in Singapore. The metal is heading for its longest losing streak since a 7 week slump that ended on August 15th 2008. December delivery copper on the Comex division of the New York Mercantile Exchange lost 0.8% to USD 2.7140 per pound at the same time. China’s markets are closed for an 8 day holiday.
The dollar rose to a 3 week high against the euro as the prospect of slower global growth fueled demand for the safety of the yen and the US currency.
