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Comex copper

ends lower

NEW YORK: Funds stepped in to cream off profits from COMEX copper just before close of trade because of uncertainty over the market's direction, traders said. Others said the sell-off as largely due to the rollover.

"The funds bought up the market early in the week to over 140 cents a lb, and then started selling off today. I believe the market is not stable," said a floor source.

The source pegged downside support at about 136.00 cents. Estimated volume was 11,000 lots versus yesterday's official 7,237 lots. Switches were estimated at 1,272.

Spreads between nearby contracts collapsed to a few points by close of trade - a sign of weaker demand according to one analyst, but a trader said it was more to do with rolling over the active contract from September to December.

Active September closed at 138.70 cents a lb, down 1.15 cents, traded 139.85 to 137.30 cents a lb.

"There was a lot of long liquidation, squaring up positions before the September delivery date." the trader said. December closed 0.05 cent higher at 136.25 cents.

The market is likely to drift erratically on the lack of fundamental news until September, the trader said.-Reuter