Copper Jumps to Three-Month High, Extends Rally on Chart SignalDebarati Roy
Copper climbed to a three-month high after futures settled above the 100-day moving average for the first time since September, triggering purchases in after-hours trading.
On the Comex in New York, copper futures for May delivery jumped as much as 5.6 percent in electronic trading to $2.9145 a pound at 4:24 p.m., the highest for a most-active contract since Dec. 15. Earlier, the price closed at $2.7895, up 1 percent, on signs of tightening global supplies.
“The fundamentals have been improving for copper,” Bart Melek, the head of commodity strategy at TD Securities in Toronto, said in a telephone interview. “Once prices breached the 100-day level, we saw a lot of technical buying come in.”
The moving average was $2.7708. In three sessions, the price jumped 8.5 percent, the most since November 2011. Copper surged 7.4 percent in the previous two sessions after labor protests shut production at the Grasberg mine in Indonesia.
On Monday, prices climbed after the International Copper Study Group said on Friday that the output deficit in 2014 was 475,000 metric tons. The dollar’s two-day slump against a basket of 10 currencies bolstered the appeal of raw materials as alternative investments.
Aggregate trading on Comex was 30 percent above the 100-day average, according to data compiled by Bloomberg.
The Grasberg site opened on Saturday. The mine is owned by Freeport-McMoRan Inc., the world’s biggest publicly traded copper producer.