NEW YORK, May 19 (Reuters) - U.S. copper futures ended lower on Monday after a large build in London warehouse stocks and lingering concerns over China's near-term demand outlook slowed the market's bullish momentum from late last week, analysts said.
NOTE: For detailed report, click on [MET/L].
* Copper for July delivery <HGN8> settled down 5.10 cents at $3.7755 a lb on the COMEX metals division of the New York Mercantile Exchange. Range spanned from $3.7425 to $3.8580 -- considered an inside day as it holds inside of Friday's range of $3.7395-$3.8595.
* By 1 p.m. EDT (1700 GMT), COMEX copper volumes reached 13,280 lots. Final volumes on Friday totaled 17,102 lots.
* Open interest in the market rose 934 lots to 99,009 contracts open as of May 16.
* Copper trapped within relatively broad trading range, with a weak U.S. dollar, South American labor issues, and last week's earthquake in China running up against rising stockpiles in London and questionable demand levels.
* The number of countervailing forces will prevent a major breakout in either direction on most metals - MF Global metals analyst Edward Meir.
* London Metal Exchange (LME) copper stockpiles rose by 1,500 tonnes on Monday to 122,725 tonnes, up 13 percent during the past two weeks. Since the start of the year, LME copper stocks are down 38 percent.
* COMEX copper stocks fell by 102 short tons to 10,658 short tons on Friday.
* The key factor for the market is the lack of Chinese buying interest - David Rinehimer, director of Citi Futures Perspective in New York.
* China's imports of unwrought copper dropped 17 percent in the first four months of the year, but demand could see a pick-up in the coming months as the country rebuilds cities, factories and power networks devastated by last week's powerful earthquake. [ID:nPEK282260]
* Copper prices supported by concerns of supply tightness after subcontract workers at Codelco, Chile's state-owned copper giant, threatened to resume strikes that they had halted last week. [ID:nN16562011]
* Weekly trade data showed the net long position held by noncommercial investors in U.S. copper futures fell to 2-1/2 month lows during the week of May 13.
* Noncommercial investors were net long on 4,188 lots of copper compared with the previous week's tally of 7,194 lots, according to data from the U.S. Commodity Futures Trading Commission. [ID:nN16443865]
* LME three-month copper <MCU3> was last quoted at $8,315/8,320 a tonne, down $124 from Friday's close, when the metal rallied 1.5 percent. (Reporting by Chris Kelly; Editing by John Picinich) ((chris.kelly@thomsonreuters.com; +1 646 897 1898; Reuters Messaging: chris.kelly.reuters.com@reuters.net))
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LME overview <RING>
LME Warehouse stocks <LME/STX1>
Spot gold/silver <XAU=><XAG=>
COMEX copper futures <0#HG:>
COMEX metals warehouse stocks <CMWST>-<CMWSV>
N.Y. metals hourly volumes <IZQI>
Vols/open interest <MTXM>
RELATED NEWS AND OTHER TOPICS Precious metals news [GOL] All metals news [MTL] All commodities news [C] Metals diary [MTL/DIARY] Ldn Bullion Mkt Assoc <LBMA01> Foreign exchange rates <FX=S> Keywords: MARKETS COPPER/COMEX
(Adds single-digit inflation target dropped, quotes, analyst)
By Kwasi Kpodo
ACCRA, May 19 (Reuters) - The Bank of Ghana raised its prime interest rate by a bigger-than-expected 175 basis points to 16 percent on Monday to try to control inflation driven by rising food and fuel prices, Governor Paul Acquah said.
Acquah said Ghana's 6.3 percent growth target for 2008 was still on track, but business confidence had slackened in the first quarter and another target of nearly halving inflation to 8 percent by the end of the year now appeared unattainable.
"It is not possible, as things look now. We have been outlining our inflation profile for this year and it keeps going up, primarily due to the impact of oil prices on the economy," Acquah told reporters after a Monetary Policy Committee meeting.
"Given that perspective, the 2008 (inflation) forecast cannot in realistic terms stay on target of a single digit," he said.
Record high world crude oil prices and surging global prices for basic food commodities like rice and wheat have forced up inflation rates in many countries, hitting hard many African countries where food is the biggest household expense.
"Inflation and cost-price pressures have increased amid rising and volatile oil prices and a surge in food prices," Acquah said.
Ghana is the world's second biggest cocoa exporter and Africa's second biggest gold producer. Oil reserves discovered last year are not due to start flowing for another 2-3 years.
At its last meeting in March, the committee raised the prime rate by 75 basis points to 14.25 percent. Since then, annual inflation surged to 15.3 percent in April from 13.8 percent the previous month -- the sharpest rise this year.
"Uncertainty about developing inflation has weighed down business and consumer confidence while the general assessment of economic prospects remains strongly positive," Acquah said.
Razia Khan, of Standard Chartered bank in London, said the rate rise was "much more than the market had been anticipating".
She said the rise would lend near-term support to Ghana's cedi currency <GHS=>, which Acquah said had depreciated by 3.2 percent on a trade-weighted basis between January and April.
But in the longer term, Khan said the cedi would continue to come under downwards pressure unless Ghana reduced its dependency on costly crude oil imports, in particular by addressing domestic utility subsidies.
COCOA, GOLD UNDERPIN GROWTH
Acquah said Ghana's economy was nevertheless in good shape.
"I still think we will achieve our target of 6.3 percent GDP growth by the close of year. Our economy is still fairly resilient and robust," he said.
The average price for Ghanaian cocoa bean exports rose to $2,091.80 per tonne at the end of March, up 7.7 percent from the end of December, Acquah said. Total cocoa exports for the first quarter of 2008 rose to $401.5 million, from $382.27 million a year earlier.
Gold export prices rose to an average $916.60 per ounce over the same period, up 17.8 percent on the previous quarter and 42.4 percent year-on-year. Gold exports rose in value to $608.9 million in the first quarter of 2008, up from $395.0 million a year earlier and $486.4 million in the previous quarter.
But those increased revenues were countered by increased prices for crude oil, of which Ghana imports about $2.6 billion a year.
Average weekly prices for benchmark Brent crude oil <LCOc1> were up at $115.28 by the end of April, up 22.5 percent from late December and 70 percent year on year, Acquah said. (For full Reuters Africa coverage and to have your say on the top issues, visit: http://africa.reuters.com) (Writing by Alistair Thomson) ((dakar.newsroom@reuters.com; +221 33 864 5076; Reuters Messaging: alistair.thomson.reuters.com@reuters.net))
Keywords: GHANA RATES/
* Spot gold <XAU=> ends higher at $903.10/904.10 an ounce,
compared with $899.55/900.95 late in New York on Friday.
* Record-high oil spurs buying but a recovery in the dollar
caps gains.
* Silver <XAG=> finished lower at $16.86/16.93 an ounce, versus
$16.90/17.00 late in New York.
* Spot platinum <XPT=> ends at $2,131.50/2,151.50 an ounce,
higher than $2,126/2,141 an ounce late in New York, having
earlier hit an intraday high of $2,174 an ounce -- its best
level since March 7.
* Palladium <XPD=> closes lower at $441.00/446.00 an ounce from
$443/451 an ounce.
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SPEED GUIDES
<COMMODS> <PRECIOUS1> <PRECIOUS/FUT1> <PRECIOUS/CASH1>
<PRECIOUS/SWAP1> <PRECIOUS/VOL1> <REUTERS>
Keywords: Precious metals focus
JOHANNESBURG, May 19 (Reuters) - South African stocks surged on Monday, led by construction shares, while the rand held near an 11-week high on rising risk appetite and hopes for inflows from a bid for mobile operator MTN.
The blue-chip Top-40 index <.JTOPI> rose 1.64 percent at 32,209.53 points, while the broader All-Share index <.JALSH> increased 1.5 percent to 33,191.80 points.
"If you look at the stocks that have actually performed today the top two are both construction counters," Tubby Goodwin, a trader at Investec securities said.
"I think people are probably still pinning hopes on the fact that government spending on construction will continue right through to 2010," he said.
Construction group Aveng <AEGJ.J> starred, gaining 5.97 percent to 63.00 rand, and its rival Murray & Roberts <MURJ.J> jumped 5.56 percent at 95.00.
The rand <ZAR=D3> eased slightly, but remained near an 11-week high touched on Friday, supported by hopes of big capital inflows from foreign interest in Africa's biggest mobile operator MTN <MTNJ.J>.
The local currency was trading at 7.4910 against the dollar at 1600 GMT, 0.2 percent weaker than its close in New York on Friday when it hit its strongest level since Feb. 28.
Traders said the market sentiment remains positive with local equities higher, global risk aversion rising and investors watching for more news on bids for MTN.
"A non-eventful day ... (but) sentiment remains strong on the back of MTN and (expectations of) high rates," a Johannesburg-based dealer said.
The rand was hemmed into a 7.46 to 7.52 to the dollar range, with importers and foreign selling capping gains.
Strong inflation and hawkish comments from central bank Governor Tito Mboweni have hardened expectations of more interest rate hikes.
MTN Group <MTNJ.J>, continued its good performance on the bourse, gaining 3.43 percent to 157.22 rand. The mobile operator has attracted interest from India's Bharti-Airtel <BRTI.BO> and the UAE's Etisalat <ETEL.AD>.
Mining bourse heavyweight BHP Billiton <BILJ.J> gained 0.47 percent at 318.57 rand, while rival miner Anglo American <AGLJ.J> climbed 3.76 percent to 537.48 rand.
Shares in Africa's biggest gold producer, AngloGold Ashanti <ANGJ.J> fell 0.17 percent at 295.50 rand and GoldFields <GFIJ.J> rose 2.18 percent at 106.80 rand.
On the losers, shares in Africa's largest private hospital group Netcare <NTCJ.J> fell 3.48 percent to 859 rand. (Reporting by Gordon Bell and Gugulakhe Lourie; editing by David Christian-Edwards) ((gordon.bell@reuters.com; +27 11 775 3151; Reuters Messaging: gordon.bell.reuters.com@reuters.net)) (For full Reuters Africa coverage and to have your say on the top issues, visit: http://africa.reuters.com/ )
Keywords: MARKETS SAFRICA/CLOSE
NEW YORK, May 19 (Reuters) - U.S. copper futures fell at the open on Monday after a hefty influx of material into London warehouses weighed on sentiment, but the losses were limited as investors continued to calculate the impact of last week's powerful earthquake in China, analysts said.
NOTE: For detailed report, click on [MET/L].
* Copper for July delivery <HGN8> was trading down 5.65 cents at $3.77 a lb by 10:27 a.m. EDT (1427 GMT) on the COMEX metals division of the New York Mercantile Exchange. Morning range spanned $3.7425 to $3.8580.
* Futures volumes estimated at 4,349 lots by 9 a.m.
* Copper trapped within relatively broad trading range, with a weak U.S. dollar, South American labor issues, and the Chinese quake offset by rising stocks and questionable demand levels.
* The number of countervailing forces will prevent a major breakout in either direction on most metals - MF Global metals analyst Edward Meir.
* China has tapped more than 1,100 diesel generators to boost power supply in quake-hit Sichuan province. [ID:nPEK333891]
* London Metal Exchange (LME) copper stockpiles rose by 1,500 tonnes on Monday to 122,725 tonnes, up 13 percent during the past two weeks.
* Since the start of the year, LME copper stocks are down 38 percent.
* COMEX copper stocks fell by 102 short tons to 10,658 short tons on Friday.
* Copper finds support amid concerns of tighter supply after subcontract workers at Codelco, Chile's state-owned copper giant, threatened to resume strikes that they had halted last week. [ID:nN16562011]
* Weekly trade data showed the net long position held by noncommercial investors in U.S. copper futures fell to 2-1/2 month lows during the week of May 13.
* Noncommercial investors were net long on 4,188 lots of copper compared with the previous week's tally of 7,194 lots, according to data from the U.S. Commodity Futures Trading Commission. [ID:nN16443865]
* LME three-month copper <MCU3> last traded at $8,315 a tonne, down $124 from Friday's kerb close. (Reporting by Chris Kelly) ((chris.kelly@thomsonreuters.com; + 1 646 223 6042; Reuters Messaging: chris.kelly.reuters.com@reuters.net))
For the latest news and prices, click on the codes in brackets:
LME overview <RING>
LME Warehouse stocks <LME/STX1>
Spot gold/silver <XAU=><XAG=>
COMEX copper futures <0#HG:>
COMEX metals warehouse stocks <CMWST>-<CMWSV>
N.Y. metals hourly volumes <IZQI>
Vols/open interest <MTXM>
RELATED NEWS AND OTHER TOPICS Precious metals news [GOL] All metals news [MTL] All commodities news [C] Metals diary [MTL/DIARY] Ldn Bullion Mkt Assoc <LBMA01> Foreign exchange rates <FX=S> Keywords: MARKETS COPPER/COMEX
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