Copper settled down -0.17% at 331.15 as pressure after investors exited the market on caution before release of nonfarm payrolls. But the decline in base metals was limited as the US dollar index edged lower. The number of Americans filing new applications for unemployment benefits rose less than expected last week, suggesting labour market conditions are continuing to tighten. Power outages, strikes, floods and drought as well as lower grade source material are tightening copper supplies, potentially pushing the market into deficit earlier than expected and laying the ground for price gains later this year. Investors are eyeing U.S. nonfarm payrolls data due later in the day which may determine how soon the Federal Reserve raises interest rates. The number of Americans filing new applications for unemployment benefits rose less than expected last week, suggesting labour market conditions are continuing to tighten. The global copper market reports many mine disruptions, far more than in other industries, with lost tonnes typically being 5-6 percent of annual production. U.S. data provided further evidence that the U.S. Federal Reserve could hike interest rates as early as next month. One of several recent supply issues is a strike at a Codelco mine in Chile, which has prompted the world's top copper producer to stop offering spot refined copper to China for two weeks. Technically market is under long liquidation as market has witnessed drop in open interest by -0.4% to settled at 23887 while prices down -0.55 rupee, now Copper is getting support at 329.8 and below same could see a test of 328.3 level, And resistance is now likely to be seen at 333.2, a move above could see prices testing 335.1.

Trading Ideas:

Copper trading range for the day is 328.3-335.1.

Copper settled down as pressure after investors exited the market on caution before release of nonfarm payrolls.

But the decline in base metals was limited as the US dollar index edged lower.

One of several recent supply issues is a strike at a Codelco mine in Chile, which has prompted to stop offering spot refined copper to China for two weeks.