US Copper Ends up in Dollar-Driven Commods Rally

NEW YORK, Sept 28 (Reuters) - U.S. copper futures erased earlier losses to end up near a 5-1/2 month peak on Tuesday, as the dollar slumped and prospects for additional monetary easing grew in response to weak consumer confidence data.
 
Copper for December delivery HGZ0 rose 4.00 cents, or 1.1 percent, to close at $3.6370 per lb on the COMEX metals division of the New York Mercantile Exchange.

Range from $3.5690 to $3.6395, just shy of Monday's peak of $3.6440, which marked the highest level for the fourth position futures contract since mid April.

COMEX estimated final copper futures volume at 27,122 lots versus Monday's count at 24,181 lots.
Open interest down 512 lots at 146,701 contracts as of Sept. 27.

Copper swept up in dollar-driven commodities rally analysts.

Dollar slumped to five-month low against the euro on Tuesday, after weak consumer confidence data reinforced views of additional monetary policy. [USD/]

U.S. consumer confidence fell to lowest level since February in September and home prices dipped in July.

Federal Reserve likely preparing fresh round of quantitative easing measures to announce at the end of its Nov. 2-3 meeting hedge fund advisor Medley Global Advisors.

All cargo terminals were closed at the Port of New York and New Jersey on Tuesday, due to a strike by members of the International Longshoremen's Association union.

London Metal Exchange (LME) copper warehouse stocks were down 2,850 tonnes to 375,275, down more than 30 percent since February and at their lowest level since last November.

Ratio of canceled warrants, or metal earmarked for future delivery, equivalent to 6.42 percent of total stock levels.

COMEX copper warehouse stocks fell by 284 short tons to 85,850 short tons as of Monday.  

LME copper CMCU3 untraded at the close, but last bid at $7,951 a tonne from Monday's close at $7,910.