Copper rose for a third day in London as opinion polls showed support for Greek political parties backing a bailout plan, easing concern about the euro-region debt crisis that threatens to crimp demand.
Greece’s New Democracy, which supports a European Union rescue, placed first in all six opinion polls published May 26 as campaigning continued for next month’s general election. The euro strengthened for a first session in five against the dollar today, making metals priced in greenbacks cheaper for users of the single European currency.
“A touch of optimism has crept into the market,” RBC Capital Markets Ltd. said in a note. Copper benefited from “a deeply oversold position, as well as some talk that demand is not as poor as some perceive.”
Copper for three-month delivery settled 0.6 percent higher at $7,685 a metric ton on the London Metal Exchange. Prices are down 8.5 percent this month, on course for the biggest drop since September. Copper for July delivery rose 0.6 percent to $3.4685 a pound on the Comex in New York, where floor trading is shut today for the Memorial Day holiday.
Copper inventories monitored by the LME fell for a third session to 223,050 tons, daily exchange figures showed. Stockpiles have dropped 40 percent this year and are on course to shrink for an eighth month in a row.
“We continue to see a tight market for copper and a positive long-term outlook,” Neil Hamilton, chairman of OZ Minerals Ltd., said at the Melbourne-based producer’s annual meeting. “Global copper supply looks like it will continue to remain under pressure.”
Orders to draw the metal from LME warehouses declined for an 11th session to 23,950 tons.
Money managers switched to betting on lower copper prices by a net 2,808 Comex futures and options contracts in the week ended May 22, according to the Commodities and Futures Trading Commission. That compares with a 4,833-contract wager on a rising market a week earlier, figures showed.
Aluminum and tin rose in London. Zinc, lead and nickel fell.
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