Farallon Resources Ltd. (fka FRLIF)

[the cork]

Zinc up, Copper Futures Head for Longest Slump
Since May 2009 on Growth Concerns

By Millie Munshi and Chanyaporn Chanjaroen - Jun 8, 2010

Copper prices fell, heading for the longest slide since May 2009, on increased concern that global growth will slow and commodity demand will decline.

Fitch Ratings said Britain’s deficit challenge is “formidable,” boosting speculation that Europe’s debt crisis is spreading. China and Hong Kong stocks may drop and growth expectations will continue to fall, according to BofA Merrill Lynch Global Research. Before today, copper lost 18 percent this year on demand concern.

“Everyone is worried about the U.K. and just scared to death in general about all the uncertainty for growth,” said Michael K. Smith, the president of T&K Futures & Options in Port St. Lucie, Florida. “Copper will get beat up for the next few weeks.”

Copper futures for July delivery slid 1.4 cents, or 0.5 percent, to $2.752 a pound at 9:41 a.m. on the Comex in New York. A loss today would mean a seven-session slump, the longest since May 15, 2009.

The metal also dropped as the dollar pared earlier declines, curbing demand for commodities as alternative investments. The greenback was little changed against a basket of six currencies, after dropping as much as 0.3 percent.

“Currency volatility today” is driving metals prices, Daniel Major, an analyst at Royal Bank of Scotland Group Plc in London, said by telephone.

Copper for delivery in three months rose $3 to $6,104 a metric ton ($2.78 a pound) on the London Metal Exchange.

Nickel prices dropped. Aluminum, lead, tin and zinc gained.

http://preview.bloomberg.com/news/2010-06-08/copper-falls-for-a-seventh-day-in-london-erasing-gain-as-dollar-rebounds.html