Copper Drops From Two-Week High as Inventories IncreaseLuzi Ann Javier
Copper fell from a two week-high in New York as inventories climbed and the dollar strengthened, reducing the metal’s appeal as an alternative asset.
Stockpiles tracked by the London Metal Exchange gained 1.1 percent to 269,750 metric tons, the highest March 18. The dollar gained against the euro for a second straight day.
“The stronger dollar has a natural bearish effect on commodities priced in that currency,” Tim Evans, the chief market strategist at Long Leaf Trading Group Inc. in Chicago said in a telephone interview. “The increase in inventories is also a negative factor for prices.”
Copper futures for delivery in May fell 1.3 percent to settle at $2.9655 a pound at 1:13 p.m. on the Comex in New York. Prices yesterday rose 2 percent, the most since Dec. 4, and touched $3.019, the highest since March 11.
On the LME, copper for delivery in three months declined 1.4 percent to $6,510 a metric ton ($2.95 a pound).
Nickel for delivery in three months retreated 1.8 percent to $15,900 a ton on the LME.
Stockpiles monitored by the LME climbed to a record 285,210 tons today. The metal’s 14-day relative-strength index yesterday rose near 70, a level suggesting a potential impending drop to some analysts who study technical charts.
Zinc, lead, aluminum and tin fell in London.