Copper inches up on weaker dollar; investors watch US trade talks
SINGAPORE: Coppers prices on the London Metal Exchange and the Shanghai Futures Exchange inched up on Tuesday on the back of a weaker US dollar, while uncertainty persisted on US trade with major partners.
The LME three-month copper gained 0.15% to $9,883.5 per metric ton by 0103 GMT, and the SHFE most-traded copper contract gained 0.1% to 79,840 yuan ($11,145.23).
'The worries on the rising US government deficit has weakened the dollar, (which is) supportive to commodities, and my focus for this week will be on the US trade talks,' said a Beijing-based metals analyst from a futures company.
The dollar index, against a basket of currencies including the yen and the euro, fell 0.35% to 96.86 on Monday, on track for its sixth straight month of losses, and set to mark its worst half-year since the 1970s.
A softer dollar makes greenback-priced commodities less expensive for buyers using other currencies.
The US and China had resolved issues around shipments of Chinese rare earth minerals and magnets to the US further modifying a May deal in Geneva, the US Treasury Secretary Scott Bessent had said last week.
Copper slips on mixed Chinese data, tariff uncertainty
Countries could still face sharply higher tariffs on July 9 even if they are negotiating in good faith, Bessent said, adding that any potential extensions will be up to Trump.
LME nickel fell 0.33% to $15,165 a ton, zinc eased 0.31% to $2,743, and lead fell 0.12% to $2,042.5.
SHFE nickel fell 0.65% to 120,180 yuan, zinc fell 0.51% to 22,320 yuan, tin dropped 0.27% to 267,410 yuan, and lead ticked down 0.15% to 17,120 yuan.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
4 hours ago
- Business Recorder
Palm falls on weak rival oils and crude, lack of fundamental signals
JAKARTA: Malaysian palm oil futures extended losses for the second straight session on Tuesday, tracking weaknesses in rival oils in the Dalian and Chicago markets and softer crude oil prices following a lack of fundamental triggers. The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange lost 29 ringgit, or 0.73%, to 3,957 ringgit ($944.62) a metric ton by the midday break. 'Market sentiment remains cautious amid broader macro uncertainties, awaiting clearer fundamental signals,' said Darren Lim, commodities strategist at Singapore-based brokerage Phillip Nova. 'Subdued crude and edible oil prices, along with a firmer ringgit against the US dollar, had given pressure to palm oil prices in the lack of fresh fundamental triggers.' Dalian's most-active soyoil contract fell 0.15%, while its palm oil contract dropped 0.24%. Soyoil prices on the Chicago Board of Trade (CBOT) slipped 0.08%. Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market. Oil prices edged down on Tuesday, weighed by expectations of an OPEC+ output hike in August and concerns of an economic slowdown driven by prospects of higher US tariffs. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. Indonesia exported 8.3 million metric tons of crude and refined palm oil from January to May, the statistics bureau said on Tuesday. Indonesia raised its crude palm oil (CPO) reference price to $877.89 per metric ton for July, up from $856.38 per metric ton in June, a trade ministry regulation showed on Monday. Malaysian palm oil futures lower Exports of Malaysian palm oil products for June rose 4.3% month-on-month, according to independent inspection company AmSpec Agri Malaysia, while according to Intertek Testing Services, it grew 4.7%. The ringgit, palm's currency of trade, strengthened 0.48% against the dollar, making the commodity more expensive for buyers holding foreign currencies. Palm oil looks neutral in the 3,961-3,996 ringgit per metric ton range and an escape could suggest a direction, Reuters technical analyst Wang Tao said.
Business Recorder
4 hours ago
- Business Recorder
European shares edge higher; investors eye trade developments
European shares nudged higher on Tuesday, while uncertainty around trade deals remained a drag on sentiment. The pan-European STOXX 600 index advanced 0.2% at 542.42 points, as of 0708 GMT. With the July 9 deadline for countries to reach deals with the United States fast approaching, uncertainty about US tariffs and their impact on global growth has kept investors on edge. US President Donald Trump expressed frustration with US-Japan trade negotiations on Monday as Treasury Secretary Scott Bessent warned that countries could be notified of sharply higher tariffs despite good-faith negotiations. The EU is open to a deal that would apply a universal 10% tariff on many of its exports, but the bloc is seeking US commitments to reduce tariffs in some key sectors, Bloomberg News reported on Monday. EU's trade chief will hold negotiations this week in Washington to avert higher tariffs. European utility stocks led sectoral gains, rising 0.9%. Media shares fell 0.6%. On Tuesday, ECB President Christine Lagarde will join a panel with several other central bank chiefs, including the US Fed chair, at the ECB forum in Sintra, Portugal. European shares see monthly declines as markets eye trade developments Lagarde said on Monday that uncertainty is bound to remain a key feature of the global economy. In the US, investors await a vote over Trump's sweeping tax-cut and spending bill. Renault said it will report a loss of about 9.5 billion euros ($11.2 billion) on its stake in Nissan Motor in the first half. Shares of the French carmaker fell 1.2%.
Business Recorder
5 hours ago
- Business Recorder
Corn drops for second session on improved US crop rating; soybeans, wheat down
SINGAPORE: Chicago corn fell on Tuesday, with prices under pressure from a weekly US report showing robust crop condition, boosting prospects of higher output amid plentiful Brazilian supplies. Soybeans eased as quarterly stocks data from the US Department of Agriculture (USDA) pegged June 1 reserves above market expectations, while wheat slid on harvest pressure. The most-active corn contract on the Chicago Board of Trade (CBOT) fell 0.9% to $4.21-1/2 a bushel, as of 0257 GMT and soybeans lost 0.3% to $10.24-1/4 a bushel. Wheat fell 0.1% to $5.38 a bushel. The USDA rated 73% of the nation's corn crop in good-to-excellent condition, up from 70% a week ago and the best since 2018 at this point in the growing season. Brazil's total corn production is expected to hit 130.6 million metric tons in 2024/25, agribusiness consultancy AgRural said on Monday, raising its forecast from the 128.5 million tons it projected earlier this month. Higher inventories of soybeans continued to pressure prices. The USDA reported US June 1 stockpiles of soybeans at 1.008 billion bushels, while analysts surveyed by Reuters on average had expected 980 million bushels. For wheat, prices are being capped by ongoing Northern Hemisphere harvest and ample supplies. The USDA's quarterly wheat stocks figure of 851 million bushels was above most analysts' estimates. Corn eases on supply hopes, soybeans rise ahead of US reports Dry and chilly weather over Argentina in the coming days is set to boost conditions for planting the country's 2025/26 wheat crop, the Rosario grains exchange said on Monday and predicted higher than usual yields thanks to good levels of moisture in the soil. Commodity funds were net buyers of Chicago Board of Trade soybean and soyoil futures contracts on Monday, net sellers of soymeal and wheat and net even in corn, traders said.
