Copper falls for second consecutive day, but shortage forecasts stem losses

Copper prices fell in American trade on Wednesday, deepening their decline for the second day as most dollar-denominated commodity futures suffer losses, but expectations of a shortfall in global copper production this year curbed the losses.
 
Copper last traded at $2.720 a pound as of 14:15 GMT, down from the opening price of $2.740, with a session-high at $2.748, and a low at $2.709.
 
Copper futures lost 0.3% yesterday, the first loss in three days as most dollar-denominated commodity futures lost ground.
 
The dollar index rose 0.3% today, heading for the fourth straight daily gain and hitting a week high as yield rises on 10-year U.S. treasury bonds, while odds rise for another Fed rate hike in the next months.
 
Copper prices surged recently to a 20-month peak at $2.822 a pound on expectations of a global production shortfall in copper this year, while demand strengthens in China, the world's largest metals consumer.
 
The shortfall outlook comes as workers stage a strike in the Escondida mine in Northern Chile, the world's largest copper mine, which disrupted shipping from the mine according to BHP Bhilliton, the world's largest minerals company.