LME COPPER CLOSES AFTER RETREAT FROM EARLIER HIGHS
LME afternoon ring dealings in copper
ended with three months Grade A business at 879 stg per tonne,
a rise of three from yesterday's afternoon kerb close,
equivalent to 1,410 dlrs per tonne, up four.
    However, values were off the day's highs, reflecting the
softer tone on Comex, while the cash to three months premium
narrowed to 32 stg in the absence of followthrough to earlier
nearby buying, traders said. The breakdown of the spread
premium equated to 20, seven and five stg for the first, second
and third months, respectively. Standard metal finished with an
indicated backwardation of around two stg.
    Morning ring dealings ended with forward business at a high
of 883 stg per tonne, equivalent to 1,417 dlrs. Business
featured a wave of cash pricing purchases near the official
close which established an indicated spread backwardation of 37
stg after earlier borrowing at a premium of 32, unchanged from
yesterday afternoon, traders said.
    Forward values extended pre-market gains, despite currency
factors, with short covering and some chart support evident.
    Ring dealings also included options-linked borrowing
interest from end April dates for one month at a backwardation
of 23 stg.
    Analysts said the 870 stg area appears to have provided a
minor chart support base, although upside potential remains
limited against a background of only routine physical demand
and a buoyant U.K. Currency.
    On the morning pre-market, activity was mainly dollar-based
and within the range 1,408 to 1,411 dlrs per tonne, traders
said.
    Standard grade retained a spread backwardation of 10 stg
but was tradeless.
 REUTER
