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Comex ends on firm note

NEW YORK: Comex copper firmer, near the day's high amid expectation of further LME stock drawdowns tomorrow and encouraging short-term physical and constructive chart outlooks.

Comex made a strong opening, pushing higher the New York premium over LME to prompt arbitrage which brought the two markets closer in line.

"Although you can make arguments that fundamentally we will see a dip later on, for the short-term outlook with tightness and chart indications, we are going higher," said William O'Neill of Merrill Lynch.

Overnight LME dipped on news of a settlement in the Zambian rail strike which had marooned some of ZCCM's copper shipments.

"Any setback was in the category of consolidation," O'Neill said.

The market was later supported by trader expectations of sizeable LME copper stock drawdown tomorrow - 5,000 to 10,000 tonnes was forecast by one trading house. Some "Japanese buying in Japan" was also noted.

May Comex settled 1.00 cent higher at 120.60 cents per lb, traded 120.90 to 119.30 cents. April ended at 121.30 cents.-Reuter