US copper climbs on U.S. orders rise, Peru strike

NEW YORK, July 2 (Reuters) - U.S. copper futures returned to the upside Wednesday after higher-than-forecast U.S. factory orders data were released, reversing declines from a light profit taking spree ahead of the long U.S. holiday weekend, traders said.

Copper prices reached a fresh 2-month high overnight as a miners' strike in the world's second-largest producer Peru continued, traders said.

NOTE: For detailed report, click on [MET/L].

* Copper for September delivery HGU8 recovered after earlier losses, firming 0.95 cent to $3.92 a lb on the the New York Mercantile Exchange's COMEX division.

* The session range spanned $3.8775 to $3.93 which marked the contract's highest level since its May 5 peak at $4.22.

* Spot July copper HGN8 rose 1.35 cents to $3.9360. Earlier, it extended its high to $3.9345. The session low was also higher at $3.8920.

* Copper turned higher after U.S. factory orders came in better than predicted, with computer and electronic orders up sharply. Orders remained firm even after excluding volatile transportation and defense orders.

* U.S. factory orders was up 0.6 percent in May, compared with forecasts for a 0.4 percent rise. [nCAT002142]

* The inventories/shipments ratio, a measure of months it takes to deplete inventories at the current shipment rate, rose only slightly to 1.23 from 1.22 in April.