Copper slumps to 5-week low on weak Chinese demand

NEW YORK — Copper prices tumbled to a five-week low Thursday on expectations that falling demand from China and a slowdown in the U.S. housing market will lead to a surplus of the metal.

Other commodities traded mixed, with crude oil rebounding slightly and gold, silver and soybeans falling. Corn and wheat futures rose.

China, the world's biggest buyer of copper, has been importing less of the metal since the completion of most major construction projects heading into the Beijing summer Olympics. Copper imports in June fell 20 percent compared to May, China's custom's agency said this month. As a result, stockpiles of the metal have swelled in Shanghai and London, helping drive down prices.

"The lackluster Chinese demand has really been the 600-pound gorilla on the market's back of late," said Rob Kurzatkowski futures analyst with OptionsXpress in Chicago. "Most buildings for the Olympics have been finished for some time, and the continuing slowdown in the U.S. housing market is starting to spill over to Europe, adding to the bearish sentiment."

Copper for September delivery fell 8.05 cents to settle at $3.577 a pound on the New York Mercantile Exchange, after earlier dipping to $3.555 a pound, the lowest since June 13.

Other metals also fell. August gold fell 50 cents to settle at $922.30 an ounce on the Nymex, while September silver fell 16 cents to settle at $17.298 an ounce.

Copper prices have fallen 13 percent from their May high, beaten down as the souring global economy eats into demand for industrial metals used to wire homes and buildings for electricity, coat steel or manufacture autos.

The pullback comes despite several mining strikes in Latin America that have slowed operations at some of the world's biggest copper mines.

"None of these strikes had much impact on supply," Kurzatkowski said.

Elsewhere, energy prices rebounded Thursday after an almost $4 drop in crude prices the previous session attracted new buyers to the market.

Light, sweet crude for September delivery rose $1.05 to settle at $125.49 a barrel on the Nymex. Prices tumbled $3.98 to settle at $124.44 a barrel on Wednesday, oil's lowest finish since June 4. Crude is trading nearly 15 percent below its peak above $147 a barrel earlier this month.

Meanwhile, August natural gas tumbled 46.5 cents to settle at $9.283 per 1,000 cubic feet, its lowest point since March.

Other energy futures traded higher. August heating oil futures added 1.7 cent to settle at $3.5671 a gallon while gasoline futures rose 2.5 cents to settle at $3.0594 a gallon.

In agriculture markets, soybean prices fell further below $14 a bushel as bearish weather in the Midwest continued to boost expectations that crops will recover from massive Midwest flooding last month.

Soybeans for September delivery lost 11 cents to settle at $13.73 a bushel on the Chicago Board of Trade, after earlier falling to $13.56, the lowest since June 4.

Other grains traded higher. December corn rose 1.5 cents to settle at $5.92 a bushel on the CBOT, while December wheat added 4.5 cents to settle at $7.8775 a bushel.

___