Striking workers at the globe's biggest copper mine agreed to accept an offer that is expected to end a 14-day strike, Reuters reports.
The Escondida mine in Chile was not producing the industrial metal, prompting significant apprehension about a dearth in global supply. Miners might return to work as soon as Friday evening, the union leader told the wire service.
Resolution of the strike "might remove some of that (price) support, but I think what's going to be far more influential to prices is what happens on the macro front over the next [few] days," analyst Gayle Berry with Barclays Capital in London.
At 10:13 a.m. on Friday, copper futures dropped 1.16 percent, a .049 cent loss to $4.1865 per pound.
The mine might have lost as many as 40,000 tons of copper as a result of the labor strike, according to Reuters. The mine helps push Chile as the globe's top supplier of the industrial metal.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.