Copper Price Falls before Federal Reserve Announcement on Stimulus Easing

Nov 4 (Bloomberg) -- Copper prices fell for the first time in three days as traders bet that better-than-expected U.S. jobs data would weaken the case for additional stimulus money.

Companies in the U.S. added 43,000 workers, more than twice economists’ estimates, an ADP Employer Services report today showed. Copper dropped as much as 2 percent. The metal pared losses in electronic trading after the Federal Reserve said it will buy an additional $600 billion of Treasuries through June to boost economic growth.

"The market is a bit skittish,” said Rich Ilczyszyn, a market strategist at Lind-Waldock, a broker in Chicago, before the Fed announcement. "Fundamentally, nothing has changed.”

Copper futures for December delivery fell 5.4 cents, or 1.4 percent, to close at $3.785 a pound at 1:26 p.m. on the Comex in New York. The metal traded at $3.7925 at 2:44 p.m. The price climbed 2.8 percent in the previous two days.

Before the Fed report, economists surveyed by Bloomberg News said policy makers would probably announce a plan to purchase at least $500 billion of long-term securities.

On the London Metal Exchange, copper for delivery in three months dropped $115, or 1.4 percent, to $8,320 a metric ton ($3.77 a pound). Zinc, lead and aluminum also fell on the LME, while nickel and tin gained.