Farallon Resources Ltd. (fka FRLIF)

[the cork]

2.8872 - Comex Copper Pressured By Soft ADP Jobs Report

Jun 30, 2010 (Dow Jones Commodities News via Comtex) --

By Allen Sykora
Of DOW JONES NEWSWIRES

Copper futures slid Wednesday when a weak report on private-sector job growth in the U.S. added to recent worries about the economy and thus demand for industrial metals.

Around 9:21 a.m. EDT (1321 GMT), copper for September delivery was 4.85 cents, or 1.7%, lower at $2.8820 per pound on the Comex division of the New York Mercantile Exchange.

The contract fell as far as $2.8705, its weakest level since June 18.

"The economic outlook is deteriorating," said Frank Lesh, broker and futures analyst with FuturePath Trading in Chicago.

This weighs on industrial commodities such as copper, which is used in construction and manufacturing of big-ticket items such as appliances and automobiles.

Stock-index futures were higher overnight, then turned slightly lower, dragging down copper with them, Lesh said. The main impetus was a report showing that private-sector jobs increased by 13,000 in June. The data, released by payroll giant Automatic Data Processing Inc. and consultancy Macroeconomic Advisors, was less than the 60,000 consensus forecast.

This comes a day after a weak report on U.S. consumer confidence.

Meanwhile, Lesh said, worries persist about the potential for copper demand to weaken in Europe and China. Austerity measures pursued by a number of European governments potentially could slow their economies and thus commodity demand, Lesh said. Meanwhile, Chinese authorities have been looking to cool their economy this year, particularly the real-estate sector.

-By Allen Sykora, Dow Jones Newswires; 541-318-8765; [e-mail]

(END) Dow Jones Newswires

06-30-10 0928ET

http://news.tradingcharts.com/futures/9/4/141809549.html