Copper Caps Longest Rally Since August on Signs of U.S. DealJoe Richter
Copper futures capped the longest rally since August after the Senate crafted a deal to end a U.S. fiscal impasse, boosting the outlook for economic growth and commodities demand.
The Senate and House could vote as soon as today on the agreement that would end the 16-day-old government shutdown and increase U.S. borrowing authority, a day before it lapses. The Standard & Poor’s 500 Index of equities climbed as much as 1.4 percent, while the S&P GSCI Index of 24 raw materials gained as much as 1.2 percent.
“I would expect today’s decision to steer funds into commodities,” Brian Booth, a senior market strategist at Long Leaf Trading Group in Chicago, said in a telephone interview.
Copper futures for delivery in December gained less than 0.1 percent to settle at $3.308 a pound at 1:21 p.m. on the Comex in New York, a fifth straight increase.
The metal swung between advances and losses today as traders waited for a conclusion to the U.S. standoff. Fitch Ratings said yesterday it might lower the nation’s AAA credit rating, citing lawmakers’ inability to agree.
Copper stockpiles tracked by the London Metal Exchange fell for a 30th straight session to 502,750 metric tons, the lowest since March. That’s the longest slide since 2009.
On the LME, copper for delivery in three months added 0.3 percent to $7,260 a ton ($3.29 a pound).
Aluminum, lead, nickel and also advanced in London, while tin and zinc fell.