NEW YORK (TheStreet) -- Copper futures showed little reaction to news that Greece had passed a vote of confidence ahead of an expected bailout.
According to Adam Grimes, director of technical investments at Waverly Advisors, the trading volume for copper futures is about 80% of average trading volume, a bit lower than expected for a normally light season for commodities.
Copper on the London Metals Exchange was floating around $9,027 per ton, or $4.10 per pound earlier this morning. Yesterday's three-month copper contracts on the LME settled higher at $4.11 per pound upon speculation that the Greek prime minister would receive a vote of confidence.
The euro was weakening against the greenback this morning by 0.1%, having previously priced in the anticipated good news from Greece. The dollar was losing 0.1% compared to a basket of currencies.On the Comex this morning, July copper futures were essentially flat at $4.08 per pound. Copper settled at $4.09 per pound at the end of Tuesday's session. July futures for copper on the Shanghai Metals Exchange finished at $4.76 yesterday. While the copper market looks "quiet and boring" right now, it's during these times that traders are paying attention, said Grimes, who applies quantitative methodology in futures trading and holds a short position in copper. "Copper is sitting on the edge of a cliff. A very small downward movement could trigger further downside. Overall, we're cautious on our position in copper." Further problems plagued copper production in Codelco's Chuquicamata copper mine in Chile, according to Reuters. The company was forced to slash output at its El Teniente mine more than one month ago because of labor protests. On Wednesday, union workers blocked traffic to Chuquicamata, demanding higher wages. The company has not said whether the blockade will danger mining output levels yet. Copper mining stocks were flat to positive, with mining company Southern Copper (SCCO) up 1% at $31.40 and Freeport-McMoRan Copper & Gold (FCX) up 0.4% at $49.43.
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