LIVE FUTURES REPORT 26/09: Downturn in Comex copper prices continues unabated; dollar rises

Comex copper prices extended the latest rout in US morning trading on Tuesday September 26 with prices hitting a six-week low amid further technical selling.

Copper for December settlement on the Comex division of the New York Mercantile Exchange dipped 2.40 cents or 0.8% to $2.9135 per lb. Earlier, the contract hit $2.9100, the lowest since August 16.

“We view the recent weakness in LME copper as a healthy technical consolidation allowing heavy spec positioning to normalise and overbought conditions to dissipate,” Metal Bulletin analyst Boris Mikanikrezai said. “A powerful wave of ‘buy on the dips’ should follow. “

The rising geopolitical feud between the USA and North Korea is also leading to a general exit from riskier assets to ones deemed safer.

However, that has not aided the chief safe-haven asset. Comex gold for December delivery fell $7.10 or 0.5% to $1,304.40 per oz.

Currency moves and data releases 

  • The dollar index was up 0.55% to 93.11. 
  • In other commodities, the Texas light sweet crude oil spot price was down 0.84% to $51.78 per barrel. 
  • Geopolitical tensions in East Asia heightened after North Korea’s foreign minister said on Monday that US President Donald Trump’s recent remarks are a declaration of war, and that Pyongyang has the right to take countermeasures, including shooting down US planes. 
  • The economic agenda is light today with US new home data showing prices rose 5.8% in July, above the forecast of the 5.7%. 
  • In addition, US Federal Open Market Committee chairwoman Janet Yellen is due to speak at the National Assn for Business Economics annual meeting in Cleveland.


Dalton Barker

Published

Dalton Barker

September 26, 2017

16:20 GMT

Chicago