Copper prices were falling Tuesday on fears that the rally for the metal in the prior session may have been a bit overdone.
Benchmark copper contracts were off 3 cents at $3.44 a pound on the Comex division of the New York Mercantile Exchange. The
PowerShares DB Base Metals
exchange-traded fund, which tracks industrial metals, was losing 1.5% in recent action.
Despite the early weakness, low levels of inventories around the globe and lingering supply fears associated with labor unrest at Grupo Mexico -- the factor that boosted prices 6 cents Monday -- should help to stem further drops.
Among stocks, Citigroup upped its rating on diversified miner
to buy from hold, sending the stock up 0.6% in recent action.
was losing 0.7% amid the general softness in the metals complex, as well as the wider indices.
Meanwhile, gold prices were edging lower in choppy action as traders struggled to find direction.
Lately, bullion contracts were losing 70 cents at $675.60 an ounce on the Nymex. The exchange-traded funds that hold stores of the metal --
streetTracks Gold Shares
iShares Comex Gold Trust
-- were down fractionally.
The Bank of Spain said it sold about 28 tons of gold in May following sales of 40 tons in each of the prior two months, according to published reports.
In the agricultural complex, cocoa prices were rallying 1.7% at $1,887 a ton, while soybeans were up 1.6% at $8.29 a bushel. Sugar prices were retreating 1.4% to 8.8 cents a pound.
Shares of grain processor
Archer Daniels Midland
were losing 0.5% in recent action.