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Copper (3.8543) Futures Edge Higher On US Data, Dollar
Mar 15, 2012 By Tatyana Shumsky Of DOW JONES NEWSWIRES

--Comex May copper up 0.5% at $3.8685/lb
--U.S. weekly jobless claims fall, signal improvement in labor market
--Freeport McMoRan says Indonesia operations restarted, will reach full production in 2Q

NEW YORK (Dow Jones)--Copper futures edged higher Thursday, on a weaker dollar and upbeat weekly US jobs data.

The most actively traded contract, for May delivery, was recently up 2.05 cents, or 0.5%, at $3.8685 a pound on the Comex division of the New York Mercantile Exchange.

Initial jobless claims in the U.S. tumbled by 14,000 to a seasonally adjusted 351,000 in the week ended March 10, beating forecasts of a 5,000 decline. The data are the latest sign that the U.S. labor market is improving.

Copper futures caught a boost off the report. Copper is considered an economic bellwether because its used in a wide variety of everyday goods like cellphones, cars and household plumbing. This ubiquity makes copper prices sensitive to economic data, because slower business activity damps demand for products that contain copper.

A weaker dollar also gave copper futures some support. The ICE Dollar Index was recently at 80.359, down from 80.510 late Wednesday in New York.

Copper is priced in dollars and can appear less expensive to investors who use other currencies when the U.S. Dollar weakens, luring these buyers to the market.

Trader attention now shifts to upcoming release of manufacturing activity data from the Federal Reserve Bank Philadelphia. Copper is widely used in manufacturing for its ability to conduct electricity and resist rust in water.

Elsewhere, the world's largest listed copper mining company, Freeport-McMoRan Copper & Gold Inc. (FCX) said it expects its Grasberg mining and milling operations to reach full production in the second quarter. The company's Indonesia unit restarted operations on March 12, after a labor-related shutdown on Feb. 23.

Freeport said the production disruptions will reduce first-quarter output and sales by about 80 million pounds of copper and 125,000 ounces of gold. The company now expects first-quarter consolidated sales volumes of 795 million pounds of copper and 300,000 ounces of gold, down from its January guidance of 875 million pounds of copper and 425,000 ounces of gold, including 210 million pounds and 400,000 ounces from its PT Freeport Indonesia unit.

Freeport shares were recently trading 1.5% higher at $38.70 premarket. The stock is up 3.6% so far this year.

-By Tatyana Shumsky, Dow Jones Newswires; 212-416-3095; [e-mail]
(END) Dow Jones Newswires
03-15-12 0923ET

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