Copper Slips, Caution Persists after Greek Deal

Industry News 09:55:29AM Feb 10, 2012 Source:SMM

SINGAPORE, Feb 10 (Reuters) - London copper futures fell nearly 1 percent on Friday, after rising to five-month highs in the previous session, as euro zone finance ministers sought more measures from Greece before it provides its second EU bailout.   
   
Fundamentals

Three-month copper on the London Metal Exchange dropped 0.9 percent to $8,680.50 a tonne by 0113 GMT, after peaking at $8,765 on Thursday, its loftiest since Sept. 16. Copper is still eyeing a fifth straight week of gains.    

All eyes are on China's commodity imports data for January for clues on Beijing's raw material demand although the early Lunar New Year break could lead to a distorted picture. A Reuters poll points to a decline in imports with Chinese factories shut during the holiday.
    
The most-traded May copper contract on the Shanghai Futures Exchange rose 0.6 percent to 61,740 yuan a tonne, chasing LME's gains in the previous session.
   
Greek political leaders said they had clinched a deal on economic reforms needed to secure a second EU bailout, but euro zone finance ministers demanded more steps and a parliamentary seal of approval before providing the aid.    

Jean-Claude Juncker, who chairs the Eurogroup, set three conditions, saying the Greek parliament must ratify the package when it meets on Sunday and a further 325 million euros of spending reductions needed to be identified by next Wednesday, after which euro zone finance ministers would meet again.   

A mending U.S. job market lent support to copper on Thursday, with the number of Americans signing up for unemployment benefits falling unexpectedly last week.
    
The CME Group cut trading margins for copper by 13 percent to $6,750 per contract, and also slashed margins for other products including crude oil, Brent, gold, silver and platinum.    
     
Markets News

The euro steadied against the U.S. dollar after touching a two-month high on the Greek bailout deal.    

U.S. stocks rose modestly for a third straight day on Thursday after Greece reached a deal to secure a financial bailout, but investors were cautious after weeks of gains.
       
    DATA/EVENTS (GMT)   
    China     Exports yy            Jan             
    China     Imports yy            Jan             
    China     Trade balance         Jan             
    1330  U.S.  International Trade Dec                
    2030  U.S.  CFTC commitment of traders data
    
  Base metals prices at 0113 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8680.50    -79.50     -0.91     14.22
  SHFE CU FUT MAY2    61740       390     +0.64     11.52
  HG COPPER MAR2     395.25     -2.60     -0.65     15.03
  LME Alum          2279.00     -8.00     -0.35     12.82
  SHFE AL FUT MAY2    16345        60     +0.37      3.16
  LME Zinc          2143.00    -17.00     -0.79     16.15
  SHFE ZN FUT APR2    16190        45     +0.28      9.43
  LME Nickel       21650.00    110.00     +0.51     15.71
  LME Lead          2215.00     -7.00     -0.32      8.85
  SHFE PB FUT      16105.00     25.00     +0.16      5.36
  LME Tin          25400.00      0.00     +0.00     32.29
  LME/Shanghai arb^    2440
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
    











 

Copper Slips, Caution Persists after Greek Deal

Industry News 09:55:29AM Feb 10, 2012 Source:SMM

SINGAPORE, Feb 10 (Reuters) - London copper futures fell nearly 1 percent on Friday, after rising to five-month highs in the previous session, as euro zone finance ministers sought more measures from Greece before it provides its second EU bailout.   
   
Fundamentals

Three-month copper on the London Metal Exchange dropped 0.9 percent to $8,680.50 a tonne by 0113 GMT, after peaking at $8,765 on Thursday, its loftiest since Sept. 16. Copper is still eyeing a fifth straight week of gains.    

All eyes are on China's commodity imports data for January for clues on Beijing's raw material demand although the early Lunar New Year break could lead to a distorted picture. A Reuters poll points to a decline in imports with Chinese factories shut during the holiday.
    
The most-traded May copper contract on the Shanghai Futures Exchange rose 0.6 percent to 61,740 yuan a tonne, chasing LME's gains in the previous session.
   
Greek political leaders said they had clinched a deal on economic reforms needed to secure a second EU bailout, but euro zone finance ministers demanded more steps and a parliamentary seal of approval before providing the aid.    

Jean-Claude Juncker, who chairs the Eurogroup, set three conditions, saying the Greek parliament must ratify the package when it meets on Sunday and a further 325 million euros of spending reductions needed to be identified by next Wednesday, after which euro zone finance ministers would meet again.   

A mending U.S. job market lent support to copper on Thursday, with the number of Americans signing up for unemployment benefits falling unexpectedly last week.
    
The CME Group cut trading margins for copper by 13 percent to $6,750 per contract, and also slashed margins for other products including crude oil, Brent, gold, silver and platinum.    
     
Markets News

The euro steadied against the U.S. dollar after touching a two-month high on the Greek bailout deal.    

U.S. stocks rose modestly for a third straight day on Thursday after Greece reached a deal to secure a financial bailout, but investors were cautious after weeks of gains.
       
    DATA/EVENTS (GMT)   
    China     Exports yy            Jan             
    China     Imports yy            Jan             
    China     Trade balance         Jan             
    1330  U.S.  International Trade Dec                
    2030  U.S.  CFTC commitment of traders data
    
  Base metals prices at 0113 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8680.50    -79.50     -0.91     14.22
  SHFE CU FUT MAY2    61740       390     +0.64     11.52
  HG COPPER MAR2     395.25     -2.60     -0.65     15.03
  LME Alum          2279.00     -8.00     -0.35     12.82
  SHFE AL FUT MAY2    16345        60     +0.37      3.16
  LME Zinc          2143.00    -17.00     -0.79     16.15
  SHFE ZN FUT APR2    16190        45     +0.28      9.43
  LME Nickel       21650.00    110.00     +0.51     15.71
  LME Lead          2215.00     -7.00     -0.32      8.85
  SHFE PB FUT      16105.00     25.00     +0.16      5.36
  LME Tin          25400.00      0.00     +0.00     32.29
  LME/Shanghai arb^    2440
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month