Futures Markets: Copper Prices Rise Second Day in a Row Due to Indications of Improved Economy
Copper futures prices were firm again on indications of an improved economy and prospective demand for the metal.</br></br>May delivery copper rose 2.75 cents a pound to $1.06, for a two-day gain of 5.5 cents. The market ignored an increase of 684 tons in warehouse stocks of New York's Commodity Exchange to 11,529 tons.</br></br>"There's a generally more positive attitude toward the economy," said Bette Raptapoulos, analyst for Prudential-Bache Securities Inc., New York. "You have the more than 20% increase in new home sales in February and the housing market is a key user of copper."</br></br>William O'Neill, research director for Elders Futures, New York, observed that while trading lacked distinction, the premium commanded by the May futures contract over more distant months was a key indicator of the strength in the market.</br></br>"One spread that traders are closely watching is the May-December," he said. The premium of May over December rose 0.75 cent a pound to 15.8 cents, he said, which indicates "concern during forthcoming months about supplies of copper to meet demand."