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COMEX copper

posts losses

NEW YORK: COMEX copper ended lower and is expected to continue testing the downside, traders and analysts said on Monday.

Active September closed 2 cents lower at 140.05 cents a lb, traded 141.80 to 139.80 cents a lb. Volume was estimated at 8,000 lots compared to Friday's official 6,188 lots.

A floor source said there were some light sell stops at 140 cents a lb basis September, but the market was able to bounce back from 139.80 cents a lb where there are a lot of sell stops.

"We are looking for tomorrow to go down to 139.80 cents basis September. There is no news, we don't know what's going to be happening," the floor source said.

A trader said there was some arbitrage - selling LME and buying December COMEX - though the latter did not hit 138.00 cents to trigger buy stops rumored at that level.

PaineWebber's Bernard Savaiko said, "Good trade selling prevented speculators from moving the market up. I think we are going to take a shot at 138 cents a lb or even 135.75 cents a lb, basis September," Savaiko said.

The CFTC's commitment of traders report for week ending August 15 show that speculators become longer in the market, while the trade continued to be particularly short.-Reuter