That is why we are so surprised to see how high the specs have been able to run this position with open interest today around 210k.
Technically, Z'07 has broken all lines of resistance except the contract high at 63.50. On top of that we are at the very critical transition period between crops and this forces mills to buy even if they are not happy with the market levels.
China has even announced they will open up strategic reserves to cool off local prices that are very strong recently. However, we did mention that the specs have to be reaching a level that is difficult to maintain and the RSI is over 70%.
With N'07 expiring and Z'07 becoming the most active month, we will have to wait and see if this high at 62.10 can hold or we try and test 63.50.
marketing@alchempro.com
