NEW YORK, Nov 5 (Reuters) - U.S. copper futures fell in early Thursday
business in spite of better-than-forecast U.S. data and a stronger euro
against the dollar, as the red metal ran into technical selling in its
recent run above $3.00 per lb, traders said.
For detailed report on global copper markets, click on [MET/L]
* Copper for December delivery HGZ9 traded 4.35 cents lower at
$2.9410 a lb on the New York Mercantile Exchange's COMEX division.
* Range ran from $2.9470 to $2.9975.
* COMEX estimated futures volume at 6,654 lots by 9:00 a.m. EST (1400
GMT).
* Copper ran into technical sellers in its latest attempt to breach the
psychological barrier of $3.0 per lb. - traders.
* "It just went up too far, too fast," said Frank McGhee, head precious
metals trader at Integrated Brokerage Services LLC in Chicago.
* The latest U.S. government data series both came in better than
analysts predicted in a Reuters consensus and provided an underpinning for
copper prices - traders.
* U.S. workers filing new claims for jobless insurance fell more than
expected last week to a 10-month low, pointing to gradual improvement in
the labor market. Story: [ID:nN0436092] Table: [ID:nOAT004342]
* U.S. non-farm productivity in the third quarter rose at its fastest
pace in six years as companies squeezed more output from a smaller pool of
labor and cut costs to deal with a slump in demand. Story: [ID:nN0436475]
Table: [ID:nOAT004342] * Copper traders also ignored the
weakening dollar versus euro after the ECB kept interest rates at a record
low 1.0 percent but said the latest evidence suggests a pick-up in European
activity in the second half of this year.
* Euro traded well off its session lows against the dollar after
European Central Bank president Jean-Claude Trichet said the euro zone
economy will recover next year. [USD/]
* Traders also await October U.S. employment data on Friday, with the
unemployment rate forecast to rise to 9.9 percent from 9.8 percent in
September, while non-farm payrolls were seen falling by 175,000 from a
263,000 drop previously.
* London Metal Exchange warehouse stocks jumped 5,775 tonnes to 379,825
tonnes on Thursday. [LME-STOCKS]
* COMEX copper warehouse stocks added 1,169 short tons on Wednesday to
63,592 short tons. [CMWSU]
* In London, LME three-month copper MCU3 slipped to $6,540 from
$6,575 a tonne at Wednesday's kerb close.
(Reporting by Carole Vaporean; Editing by John Picinich)
