Futures began the day with a bid tone this morning, with reports of commercial sales into China and various other export markets over the evening. March obliged, opening up some 25 higher along with all of the back months. Interestingly in direct contrast to yesterday, this proved to be the low for the session as friendly options activity combined with some increased spec buying interest.
The Energy, metals and grains complex were all leading the way for commodities today, and we felt some of the ripple effect of their combined strength. Despite the price rally—with March moving as high as 55.00 in the mid session, the spreads actually widened out. March / May moved as wide as 108 May over, continuing it's recent widening trend.
Added to this was interest in the March / December with December gaining and holding good ground over the front months. Prices remained firm throughout the session, but again still well entrenched in the recently tight trading range. Prices settled between 60 and 73 points higher across the board. Estimated volume was quite decent at 21,500 contracts.
The spec hedge report this morning revealed a slightly longer spec position this week. For the week the longs increased 4,200 contracts, mostly as a result of index fund additions according to Friday's CFTC commitment of Traders. Shorts also increased 1,400 lots, which is in line with increases in open interest. Overall the specs are now 2.8% or 5,031 net contracts.
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
