Unemployment data lifts U.S. copper to 20-month peak

by Guest 4/5/2010 11:57:00 PM

New York commodity markets were closed on Friday, April 2, for the Good Friday holiday.

Copper for May delivery firmed 3.15 cents to $3.6155 per lb by 10:34 a.m. EDT (1434 GMT) on the New York Mercantile Exchange's COMEX division.

Range from $3.5755 to $3.6265, the highest level for the second-position contract based on a continuation basis since early August 2008.

COMEX estimated copper futures volume at a thin 5,943 lots by 10 a.m.

London Metal Exchange (LME) and Shanghai Futures Exchange closed Monday for Easter holidays.

Copper buoyed by follow-through support from upbeat unemployment on Friday, reflecting the economic recovery is in place - Frank Lesh, broker and futures analyst with Future Path Trading in Chicago.

Nonfarm payrolls rose 162,000 in March and the unemployment rate held steady at 9.7 percent for a third straight month - U.S. Labor Department said on Friday.

Improved economic conditions reflected in unexpected rise in U.S. pending home sales in February and extended growth in services sector.

Upbeat manufacturing data last week from the United States, Europe and Asia suggested recovery was taking root in economies around the world.

Copper prices likely to hover close to $8,000 a tonne or $3.62 a lb until June. Prices to average $3.30 a lb ($7,275 a tonne) in 2010 - Marcelo Awad, Chief Executive of Antofagasta Minerals (ANTO.L).

Chile's Codelco, the world's top copper producer, sees 2010 output unchanged despite a massive earthquake in late February that forced it to briefly suspend operations at three mines.

LME copper warehouse stocks fell by 1,875 tonnes to 512,450 tonnes on Thursday, down more than 42,000 tonnes from 6-1/2 year highs at 555,075 in mid-February.

COMEX copper stocks were unchanged at 101,103 short tons as of Thursday.

LME copper closed Thursday at $7,885 per tonne.

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