US copper drops below $3/lb on weak housing data

NEW YORK, Oct 28 (Reuters) - U.S. copper futures extended
losses below the $3.00 per lb level Wednesday morning after an
unexpected decline in new home sales fanned concerns about the
pace of economic recovery and its impact on demand for the
metal.

For detailed report on global copper markets, click on
[MET/L]

* Copper for December delivery HGZ9 was down 2.70 cents
at $2.9720 a lb 10:32 a.m. EDT (1432 GMT) on the New York
Mercantile Exchange's COMEX division.

* Range from $2.9425 to $3.0340.

* Benchmark December contract pulling away from Monday's
13-month high of $3.0690.

* COMEX estimated futures volume at 12,320 lots by 9 a.m.

* Copper, used primarily in construction and electrical
wiring, slipped after data showed sales of newly built U.S.
homes plunge 3.6 percent in September, their first decline
since March. [ID:nN28296063]

* Weak home sales data another example of lack of real
demand outside of China - Frank Lesh, broker and futures
analyst with Future Path Trading in Chicago

* Market likely to see further losses if the dollar
continues its recent move higher - Lesh.

* Dollar extended gains against the euro EUR= following
new home sales data. [USD/]

* Demand concerns highlighted in London Metal Exchange
stockpile data showing another 1,075 tonnes enter into
warehouses, bringing total levels to 371,725 tonnes, their
highest since May. [LME/STX1]

* COMEX copper warehouse stocks climbed 783 short tons on
Tuesday to 59,811 short tons.

* Downside limited due to ongoing strike at Chile's Spence
copper mine, now in its 16th day. [ID:nN28185579]

* LME three-month copper MCU3 last traded at $6,525 a
tonne, down $60 from Tuesday's kerb close.
(Reporting by Chris Kelly; editing by Jim Marshall)