Copper Takes A Breather–Is This A Short-Term Top?
Leading indicators for
May fell 0.5% to 114.1; analysts were expecting a drop of 0.2%. It was the
fourth drop in five months.
Crude oil traded
to a new record high of $59.37.
Gold hit a 3-month high as traders focus on concerns
that higher crude prices will lead to inflation.
Copper came off a three-month high as rumors that BHP
Billiton’s Cerro Colorado mine in Chile may reopen after it was closed following
an earthquake last week. Copper supply from mines and scrap yards has fallen
below demand since 2003. Prices have increased 19% in the past 5 weeks. JP
Morgan Chase analyst Jon Bergtheil said “There is a consensus view in the market
that in the second half, inventories will rise.”
Feeder cattle closed up 1.07. The USDA expects to get
the final test results soon on the cow suspected of having Mad Cow last week.
EU members failed to agree on a new 7-year budget; the euro
fell to $1.2187. Talk is that the ECB may cut rates soon.
Brice Wightman