DJ Comex Copper Review: Higher On Short Covering BoostNEW YORK...

DJ Comex Copper Review: Higher On Short Covering Boost
NEW YORK (Dow Jones)--A late-day short covering rally gave Comex copper a
boost at the close on Wednesday at the New York Mercantile Exchange as the red
metal followed rallies in the precious metals complex and stock market.

The benchmark September contract settled 180 points higher at $3.11 per
pound. During the session the contract chopped around on both sides of
unchanged in thin volume but traders said a late day short covering rally was
enough to take the contract higher.

"The market has been moving on light volume so some volatility has been
creeping back in, but not at the same level as we have seen," said a trader
noting the large price swings seen in the copper market over the past few
months.

Another trader said some supply side news added to the higher close although
others contend that fundamental news is already priced into the market.

"The roof collapse at Asarco is adding some underlying support. North
American copper stocks are low so it doesn't take much to move the market," the
trader said. He added that the September contract appears to be building a base
and has been trading sideways since Monday's drop off in price.

One market player said fundamental news would need to be "catastrophic" to
move copper prices in a large way.



Settlements(ranges include overnight and day sessions):


July (HGN06) $3.1905; up 1.90c; Range $3.1190-$3.2050

Sept (HGU06) $3.1100; up 1.80c; Range $3.0350-$3.1190


-By Alison Guerriere Ciaccio; Dow Jones Newswires; 201-938-5959;
[email protected]