CORRECTED - US Copper Ends near 3-1/2-mo High on Short Covering

NEW YORK, Aug 30 (Reuters) –

U.S. copper finished near the
3-1/2-month high set early on Monday, after several central
banks indicated they would continue to stimulate a stumbling
economic recovery, triggering some short-cover buying, but
volume was thin with London markets closed, traders said.

Copper for September delivery HGU0 finished 1.49
percent, or 5.0 cents, higher at $3.4130 per lb on the COMEX
metals division of the New York Mercantile Exchange.

Prices hit an early high of $3.4310, a level last seen in
early May, up from a session low at $3.3790 per pound.

Dealings remained light throughout the session with the
London Metal Exchange closed for a bank holiday - brokers.

COMEX estimated final copper futures volume at
34,825lots.

Open interest jumped by 2,687 lots to 142,198 contracts
as of Aug. 27.

Some players have begun shifting into December copper
with September quickly turning into spot month - brokers.

Copper for December delivery HGU0 settled with 4.50
cent, or 1.33 percent, gains at $3.4295 per lb on COMEX.

Copper maintained its strength after buying continued
overnight in Asia from the rally on Friday - traders.
 
Copper was pulled higher on Friday after Fed Chairman
Bernanke's speech at Jackson Hole - traders.
 
Bernanke said the U.S. economic recovery had softened
more than expected, but the Fed was ready to take further steps
to help stimulate growth if necessary.

The Bank of Japan followed Bernanke's speech by boosting
its cheap loan scheme on Monday, bowing to government pressure
for action to protect a fragile recovery.

"It's (copper) being helped to a degree by apparent
additional stimulus and/or accommodative positions of various
central banks. Not just the Fed, but also the Bank of Japan,"
said Frank McGhee, head metals trader with Integrated Brokerage
Services LLC in Chicago.
 
The red metal managed to hold onto higher levels despite
falling U.S. stock indexes and a rising dollar, sending a
message that copper bulls remain in charge - traders.
 
A positive attitude towards the red metal sparked some
short-cover buying that propelled prices through technical
resistance at prior highs at $3.4105 per lb on the September
chart - traders.
 
Aiding the strong outlook, London Metal Exchange (LME)
copper warehouse stocks had been drawn down by 1,150 tonnes on
Friday to 400,100 tonnes,
 
Benchmark copper CMCU3 on the London Metal Exchange
closed Friday at $7,459 up from $7,304.5 previously.