Farallon Resources Ltd. (fka FRLIF)

[the cork]

Lead up 1%, Copper Climbs to 27-Month High; Zinc Gains to Nine-Month Peak
By Glenys Sim - Oct 25, 2010 7:09 PM PT

Copper advanced to the highest level in more than 27 months, gaining for a third day, as investors sought alternatives to a weakening dollar. Zinc rose to the highest price in nine months.

Copper for three-month delivery increased as much as 0.4 percent to $8,554 a metric ton on the London Metal Exchange, the highest level since July 2008, and traded at $8,548 a ton at 10:04 a.m. in Singapore. The metal used in construction and household appliances earlier fell as much as 0.5 percent.

“It’s all to do with the outlook for the economy and the dollar, and a kind of manic momentum that’s driven, and may most probably extend, the rally,” said Zhi Shiwei, an analyst at Yong’an Futures Co., said from Beijing. “Inflationary concerns are surfacing, which is bullish for commodities.”

The dollar was little changed after falling to a one-week low yesterday against a six-currency basket including the euro and yen, on speculation increased government bond purchases by the Federal Reserve may weaken the currency. Investors often buy raw materials as a hedge against a decline in the dollar’s value.

In Chile, the world’s largest copper producer, unions at Anglo American Plc and Xstrata Plc’s Collahuasi mining unit called on workers to reject the company’s latest wage offer, setting the stage for a possible strike at the world’s fourth- largest copper mine. Employees will vote tomorrow on the company’s new wage offer, the company said.

Zinc in London gained as much as 2.9 percent to $2,638.75 a ton, the highest price since January as investors bet that supply may lag behind demand after Shenzhen Zhongjin Lingnan Nonfemet Co., China’s third-largest zinc producer, suspended output at its biggest zinc and lead smelter. The metal also rose to a nine-month high in Shanghai.

Among other LME-trade metals, aluminum rose 0.6 percent to $2,387 a ton, lead gained 1 percent to $2,610 a ton, nickel climbed 0.5 percent to $23,690 a ton, and tin fell 0.2 percent to $26,850 a ton.

http://www.bloomberg.com/news/2010-10-26/copper-climbs-to-27-month-high-zinc-gains-to-nine-month-peak.html