NEW YORK (AP) - Copper prices briefly surged to a new record Monday on
supply concerns fed by a mining stoppage in Chile, the world's largest producer
of the metal.
Other commodities traded mixed, with crude surging to a record above $120
and agriculture futures mostly falling.
Subcontract workers at Chile's state-owned copper giant Codelco went on
strike April 16, alleging the company reneged on an agreement that ended a
monthlong strike last year. The stoppage has frozen work at two of Codelco's
five mines, halting 28 percent of Codelco's total production and 3 percent of
global output. A third mine that was shuttered came back online last week.
"It wasn't expected to be a long-lived strike and it does account for a
fairly significant amount of output," said Catherine Virga, base metals analyst
with CPM Group in New York.
Copper for July delivery shot up to a record $4.2605 a pound on the New York
Mercantile Exchange, before later pulling back to settle at $3.9475, up 12.7
cents.
Light trading due to a holiday closure of the London Metals Exchange on
Monday likely contributed to copper's surge, Virga said.
"It seems due to the illiquid conditions with the LME being closed that
there are less investors participating," adding to the volatility, she said.
Copper has gained 23 percent this year, driven up by a weak dollar and
heightened inflation concerns that have enhanced the allure of precious metals.
In other Nymex trading, gold futures jumped after the dollar weakened
against the euro, prompting investors to shift funds into hard assets.
Gold for June delivery rose $16.10 to settle at $874.10 an ounce on the
Nymex, its highest level in a week. Silver, meanwhile, added 36.5 cents to
settle at $16.83 an ounce.
In energy markets, oil futures surged to a new record over $120 a barrel
after supply threats emerged overseas. The weaker dollar also drove up prices.
Light, sweet crude for June delivery to a new trading record of $120.36 a
barrel on the New York Mercantile Exchange before falling back slightly to
settle at a record $119.97, up $3.65.
Other energy futures also jumped. June gasoline futures rose 8.65 cents to
settle at $3.0529 a gallon on the Nymex, and June heating oil futures rose 8.78
cents to settle at $3.3065 a gallon.
In agriculture markets, soybean and corn futures fell as investors bet that
dry weather in the Midwest would speed up spring planting, easing supply
concerns.
Soybeans for July delivery fell 18.5 cents to settle at $12.86 a bushel on
the Chicago Board of Trade; while July corn dropped 19.5 cents to settle at
$5.94 a bushel.
Other agriculture futures traded mixed. Rough rice futures July delivery
rose 5.5 cents to settle at $21 per 100 pounds, while July wheat fell 3.5 cents
to settle at $8.055 a bushel.
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