aby copper at us$2.40/lb, page-13

From Casey Research:

Copper highlighted a day in which there were strong price moves in both directions, but little change in the end, as an early prolongation of the recent correction was arrested by the declining dollar.

“Ultimately the market got ahead of itself, using commodities as a hedge. Copper's failure to react strongly to dollar weakness suggests an investor focus on weaker fundamentals,” said Bart Melek, of BMO Nesbitt Burns in Toronto.

Melek added that, “China is not enough to sustain a longer-term price rally. We need to see rest of the world show improvement.”

Stockpiles continued their long swoon, however, with copper inventories monitored by the LME falling by 1,875 metric tons yesterday, to 283,175 tons. The rapid pace of decline may have slowed recently, but the trend appears intact.