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Copper remains weaker

NEW YORK: COMEX copper remained weaker at midday in dull trade, after a rally last week left the market overbought and due for a retracement, market sources said.

At 1210 EDT, most-active May was off 1.00 cent at 122.00 cents per lb, traded from 123.00 to 121.80, while July was down 1.20 at 119.30 cents.

Refco Inc analyst James Steel said that, while he expected copper prices would pull back in the longer term, the tightness in the cash market would probably persist at least for the remainder of this month.

He noted good economic activity in the U.S. fueling demand for the metal, while the market would continue monitoring LME warehouse stock data for signs suggesting further drawdowns by the Chinese.

Friday's open interest rose 2,335 lots to 49,128, suggesting fresh long positions were the driving force behind that day's rally.-Reuter