US copper up a bit at open on crude oil's rebound
NEW YORK, July 21 (Reuters) - U.S. copper futures were steady at the open on Monday, with a firmer tone in the energy complex enabling the red metal to hold on to modest morning gains.
NOTE: For detailed report, click on [MET/L].
* Copper for September delivery HGU8 was trading up 1.50 cents at $3.6840 a lb by 10:10 a.m. EDT (1410 GMT) on the New York Mercantile Exchange's COMEX division.
* The morning range was from $3.6675 to $3.7135.
* On the charts, support in September contract seen at $3.65 to $3.63, followed by $3.50. Resistance pegged at $3.80, followed by $4.00.
* By 9 a.m. EDT (1300 GMT), COMEX estimated volumes at a modest 2,669 lots.
* Copper up on back of the sharp rebound in U.S. crude oil futures.
* After a four-day losing streak on the New York Mercantile Exchange, August crude CLQ8 was up $2.48 or 1.92 percent at $131.36 a barrel, trading from $128.88, where it settled on Friday, to $132.05.
* "With oil bouncing back to $130 after inconclusive Iran talks and gold inching back over $965, the 'safe haven players' may be adding back some metals longs recently liquidated." - RBC Capital Markets.
* Copper gains buck lessened supply threat from Peru, the world's No. 2 producer.
* A strike planned to start on Monday at Southern Copper's (PCU.N) (SPC.LM) Peruvian mine, Cuajone, has been suspended by the labor union. [ID:nN20354208]
* Cuajone produced 148,939 tons of copper last year and is Southern's biggest mine in Peru.
* Meanwhile, an armed gang attacked and set fire to a mine exploration rig at the giant Philippines Tampakan copper prospect held jointly by Xstrata Copper (XTA.L) and Australia-listed Indophil Resources NL (IRN.AX). [ID:nSYD251683]
* London Metal Exchange (LME) inventories rose by 175 tonnes to 128,725 tonnes on Monday.
* COMEX copper stocks declined 157 short tons to 7,700 short tons on Friday. Inventories are down more than 30 percent since the start of the month.
* Noncommercial investors, often termed speculators, slashed their net long, or bullish, position in U.S. copper futures by more than half.
* The noncommercial position in COMEX copper futures was a net long of 3,019 contracts for the week ended July 15, against a net long of 6,538 contracts for the week to July 8, data from the Commodity Futures Trading Commission (CFTC) showed. [ID:nN18453470]
* World refined copper consumption exceeded production by 108,000 tonnes between January and April this year, against a deficit of 244,000 tonnes in the same year-ago period - the International Copper Study Group (ICSG). [ID:nL21919565]
* LME copper for delivery in three-months MCU3 last traded at $8,135 a tonne, up $55 from Friday's close. (Reporting by Chris Kelly, editing by Matthew Lewis)
