Copper futures trade firm at Rs 507.95 per kg on weak dollar

Copper prices edged higher to Rs 507.95 per kg on October 5 as participants increased their long position, seen by the open interest. The base metal traded higher tracking weakness in the US dollar.

The US dollar index traded near 93.62 levels, adding on to last week’s 0.8 percent decline.

Tapan Patel, senior analyst (commodities), HDFC Securities said, “Copper prices managed to end in green on fear of supply disruption from Chile. Supervisors at Chile’s Escondida mine rejected the company’s final wage offer, moving them a step closer to a strike that could slow output at the world’s biggest copper operation.”

Sriram Iyer, senior research analyst at Reliance Securities said, “LME Copper opened at $6,562, made a high of $6,579.74 and made a low of $6,490. Prices are currently trading at $6,547.25. Friday’s close was $6,545. It is trading on flat note and sustaining below 21 as well as 50 Days Moving Averages where below $6,580 will continue its bearish momentum. It could trade in a range of $6,498-$6,640.

Copper could trade sideways on marginal downside momentum.

The MCX iCOMDEX Base Metal Index rose 77.28 points, or 0.69 percent, at 11,349.86 at 6:24 pm.

In the futures market, copper for October delivery touched an intraday high of Rs 513.40 and a low of Rs 503.65 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 494.80 and a high of Rs 532.60.

Copper delivery for October surged Rs 10.45, or 2.10 percent, to Rs 507.95 per kg at 6:26 pm with a business turnover of 4,383 lots. The same for November contract gained Rs 9.40, or 1.90 percent to Rs 505.10 per kg with a turnover of 247 lots.

The value of October and November’s contracts traded so far is Rs 1,929.32 crore and Rs 25.87 crore, respectively.

MCX Copper October gave a gap-up opening and is trading on a positive note at Rs 503.65, where the high of the session till now is Rs 513.40. Futures touched a low of Rs 503.65. Prices are currently trading at Rs 511.35. Thursday's close was Rs 497.50 levels. It holds a resistance of 50-Daily Moving Average which is placed at Rs 518.00 levels below which will continue Bearishness in the counter. Support holds at Rs 508-505 & resistance at Rs 513-518 levels, said Iyer.

At 12:58 pm GMT, the red metal's price fell 0.62 percent to $6,504.25 per tonne in London.