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Bullish Outlook for Copper, Rally of Soybeans on Poor Supply

April 5, 2012 at 19:18 by Vladimir Vyun

Copper fell today for the third day, but that hasn’t deterred experts from being bullish on the industrial metal. The reason for this is the positive outlook for the US economy, caused by improving employment. Jobless claims fell from 363,000 to 357,000 last week, according to today’s report. Tomorrow, non-farm payrolls are expected to confirm that employment is rising steadily. Copper price was down from $3.8030 to 3.7915 per pound as of 18:52 GMT today on COMEX.

Soybeans continued to rally to a new record today on the forecast that adverse weather conditions will hurt crops in South America. Brazil may harvest 66 million metric tons, lower that the 68.5 million forecast by the US Department of Agriculture. Demand for US crops should rise with the shortage of supply from South American countries. The United States are the biggest producer of soybeans in the world, while Brazil is the second largest. Soybeans advanced from $14.2000 to $14.3225 per bushel today on CBoT, while the intraday high of $14.3425 was the same as the high on April 3, which was the highest price since September 5.

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