Copper Futures fell on Wednesday after a two month high on market has uncertainty over the U.S. economy which may reduce copper demand.

Copper futures for March delivery ended down 1.50 cents or 45 percent, to $3.2835 on the COMEX division of the New York Mercantile Exchange.

On the London Mercantile Exchange, copper futures for delivery in March fell $10, or 0.1 percent, to $7,220 per metric ton.

Yesterday copper reached its highest level since November 15. As the housing recession has deepened in the U.S., copper demand has decreased because the metal is frequently used for house construction. However high demand in China has kept prices high despite low worries over lower U.S. demand.

Analysts have also noted that a steep rise in canceled warrants on the London Metal Exchange has also contributed to copper's rise.

Analysts expect copper market to recover gains later this week.