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Copper settles

weaker

NEW YORK: Comex copper settled weaker, pressured by profit taking after a mid-week rally to 5-1/2-month highs, traders said on Friday.

They termed this morning's lower-than-expected LME stock drawdown a disappointment, with continued declines in Singapore mostly offset by rises in European warehouses.

Most-active July copper ended 0.20 weaker at 120.70 cents a lb, the top of the day's 120.70 to 119.50 range. The contract gained a marginal 0.20 from last week's close. May today went out 0.65 lower at 122.35, traded from 122.60 to 121.50, while the deferreds were 0.30 to 0.60 weaker.

The spot April contract, which expired today, bucked the weaker trend, surging 1.50 to close at 127.00 cents a lb.

Volume was estimated at 12,000 lots, including 1,275 switches, down from Thursday's official turnover of 13,666.

Traders expected the market to continue drawing support, at least in the near term, from signs of supply tightness reflected in the cash/threes backwardation on the LME.

There was less consensus on the longer-term outlook, however, with some analysts doubtful demand would be buoyant enough to absorb an expected rise in supplies later this year.-Reuter