1219 [Dow Jones] LME 3-month copper at $5,855, up $5 since yesterday's kerb. Triland says consumer interest apparent during yesterday's slide, reflected in high volume with over 14,000 lots done. "However, with expectations of further declines, many are sidelined awaiting lower levels. Targets as low as $5,500 have now surfaced." Volume moderate with 254 lots done so far.(JAC)
1226 [Dow Jones] Copper bears in control for now, but ongoing critically low global stocks, endemic production problems suggest prices could turn very sharply if Chinese restocking materializes in 4Q, says Morgan Stanley. LME copper drops 5% to 19-month low $5,850/ton overnight. Fund short selling, 14% increase in LME stocks to 198,000 ton in September decline in European spot premiums from about $60/ton to $40 all combine to pressure prices. But supply problems continue with Xstrata's 125,000-ton Kidd Creek operations on strike. Global no.1 producer Chile reports copper production down 2.1% year-to-date through August. Morgan Stanley estimates global output down a similar 2% year-to-date through July. LME 3-month copper unchanged at $5,850.(EFB)
