Aluminium steady, looking higher

The metals complex had a positive day on Friday, nickel excepted, with stronger gold and oil markets lending a positive tone, while surging agricultural commodities also aided sentiment. The eagerly-awaited US non-farm payroll figures were weaker than some analysts had been expecting, though there was no repeat of the previous month's poor set of numbers. Aluminium looked like replaying Thursday's mundane performance, ranging between 2745-2765 during the morning, though as other markets lifted and the 10-day moving average held, it looked like spec short-covering as the afternoon session closed on the highs.

Further slippage in the latter half of C-3m saw Dec-Jan in to 10.00b (14.00b), while Dec20-27 remained taut at 6.00b (7.00b). Forward rates had slipped in previous sessions, though on Friday they tightened again up to Q1 2010, mostly by $1.00-1.50/mth.

A stronger dollar failed to dim strength across the LME on Monday morning, with zinc leading the pack once more. Aluminium had trailed it at time of writing to a high of 2810 after early Asian buying was boosted by fresh systematic (CTA) interest, though volumes were yet shy of 1,000 lots. While certain fundamentally-oriented analysts asserted that the light metal had "$3000 written all over it", technicians Cliff Green Consultancy were also bullish, looking for a challenge to resistance c. 2830-50 in the coming days. Last at 2802, though as we signed off we noted that LME Select was down after the release of a new version.