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Copper eases at midday after short rally

NEW YORK: COMEX copper rose in midday trading helped by LME prices firming on cash buying and continued shortcovering, but the New York market soon began easing back, unable to sustain an almost four-week high.

A COMEX floor source said the May contract hit buy stops when it reached 120.00 cents to rally higher, but then eased back.

Yesterday's open interest indicated 229 fresh positions suggesting that not all the activity was shortcovering during the rally.

At 1256 EDT May copper was up 0.35 cent at 119.15 cents, reversing the morning's losses, but with most of the gains pared. The trading range was 120.50 to 117.45 cents.-Reuter