Futures again opened on the highs, continuing on a recent tradition of opening on the highs and then moving lower to close on the lows and new contract lows.
Specs remained steady sellers throughout the session today, though it must be stated that volume was very light.
Prices traded in a very tight sideways range of 30 points throughout the majority of today's session, between 49.60 and 49.90.
Spreads tightened up a little, having widened back out to 375 March over Dec yesterday. There was little to report though until near the close, where specs and locals joined forces to push prices below the lows and down to eventual lows at 49.31 on the close.
It was another weak performance, where the market has made 3 consecutive new contract lows. Prices settled with losses of 35-48 points in the active months. Estimated volume was very light at 8,500 lots.
This morning's spec hedge report showed the spec shorts again increasing their short positions. For the week spec long contracts reduced 1,500 lots whilst shorts increased 3,000 lots for a net overall position of –11,053 contracts.
Interestingly the spec short at 90,516 lots is now only 133 lots away from the record spec short contract position ( gross shorts ).
Technically the December contract continues to look impoverished. Having broken outside of the 2 month sharp accelerating down trend yesterday, prices continued to move to new life of contract lows today, at 49.31 now. Today we look at a more compressed, longer term view of the contract.
marketing@alchempro.com
