Copper futures rise marginally to Rs 530.25 per kg in evening trade

Copper prices rose marginally to Rs 530.25 per kg on October 12 as participants increased their long position as seen by the open interest.

The base metal complex traded higher with most of the metals witnessing strong recovery from recent lows.

The US Dollar Index traded flat to higher at 93.10 levels, up 0.05 percent.

Copper prices rose after talks about financial aid for the US economy restarted, the dollar slipped and miners went on strike in Chile.

“The strong demand prospectus from China over better-than-expected economic data boosted buying in base metals. Copper prices rose on supply concerns from top mining nations Chile over labour strike," Tapan Patel, senior analyst (commodities), HDFC Securities, said.

The CFTC data showed that money managers have cut their net long positions to four-week low by 6,930 lots in last week, he said.

MCX iCOMDEX Base Metal Index rose 112.41 points, or 0.94 percent, at 12,040.19 at 18:29.

In the futures market, copper for October delivery touched an intraday high of Rs 531.85 and a low of Rs 527.05 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 rose by Rs 2.10, or 0.40 percent, to Rs 530.20 per kg at 18:30 hours with a business turnover of 5,460 lots. The same for November contract fell by Rs 0.25, or 0.05 percent, to Rs 527.50 per kg with a turnover of 728 lots.

The value of October and November’s contracts traded so far is Rs 1,190.17 crore and Rs 33.82 crore, respectively.

LME Copper prices were trading with small gains this Monday afternoon trade in Asia supported by US stimulus talks and as miners went on strike in Chile, said Neha Qureshi, technical research analyst at Reliance Securities.

She said, technically, LME Copper opened on a flat note at $6,743.50, made a high of $6,783.75 where it made a low of $6,706.75. Prices are currently trading at $6,639.50. Yesterday’s close was $6,675.50. Copper continues its bullish momentum where it has given a breakout above $6,660 where it is trading above 21-Daily Moving Average indicates a positive trend in the counter. Resistance is at $6,807-$6,846 levels.

MCX Copper October is trading above its 21 as well as 50 Daily Moving Average where it is also sustaining above 526 levels indicating a positive breath in the counter. Prices could see an upside rally up to 532-537 levels in the coming session. Support holds at 526-522 levels, said Qureshi.

Copper could trade sideways to marginal upside momentum.

At 1305 (GMT), the red metal price was down 0.18 percent quoting at $6,761 per tonne in London.