Copper rose, extending a rally to a five-month high, as inventories dwindled and the dollar’s slump boosted the appeal of most commodities.
Stockpiles monitored by the London Metal Exchange have dropped every week since late February. A report showed the business climate improving in Germany, the world’s third-largest copper consumer. The greenback fell to the lowest level since February against a basket of major currencies.
“Whatever strength copper has is coming from offshore,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “The continuing outgoing movement in above-ground stocks is supportive for the market in the long term.”
Copper futures for December delivery rose 2.75 cents, or 0.8 percent, to settle at $3.618 a pound at 1:22 p.m. on the Comex in New York. Earlier, the price reached $3.636, the highest level for a most-active contract since April 15. The metal gained 2.7 percent this week.
The metal has gained 34 percent in the past year as manufacturing increased in China, the biggest user. The U.S. is the second-largest consumer.
The Reuters/Jefferies CRB Index of 19 raw materials rose to the highest level since January.
“We’ve got a weaker dollar that’s helping metals and commodities rally,” said Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago.
Copper for delivery in three months rose $60, or 0.8 percent, to $7,945 （$3.60 a pound） a metric ton on the LME. Aluminum, lead and nickel also gained. Tin and zinc fell.
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