Heavy mill buying continues to exist within 61-62 cent
17 Nov '07
3 min read
Additionally, Thursday's on-call report continued to show a significant imbalance between call sales and call purchases. The high volume of on-call sales suggest that much more buying of futures contracts remains to be done. As mills fix prices on these contracts the effect will likely be to keep prices at and above current levels. That is, futures prices should have very little room to the downside
While heavy mill buying continues to exist within the 61-62 cent trading range, the massive long positions held by funds will trigger sell stops should December futures fall below 61 cents-or the March contract slip below 65 cents.
As open interest has steadily established new record highs along with the significant imbalance between call sales and call purchases, market volatility has become more and more of an issue. Specifically, note Thursday's 150 point trading range and its 145 point sell off.
marketing@alchempro.com
