Was there some event that caused this seemingly consorted activity with the funds. Did they meet in Basel and decided that the market was a sale? Maybe it was the arguably ideal weather that we have seen. Whatever the reason, commercials and swap dealers (institutions and end users) were the buyers. The selling continued for the remainder of the week as the OI increased on Wednesday and Thursday by 15,298 lots and, likely, Friday was also a day of continued new selling. Itís probable that part of the increase was attributed to new spreads that were sold, making spreads also a focus of interest.
The COT is obviously friendly as it is anticipated that the new shorts will need to cover at some point. However, the intensity of selling, if it continues, will drive prices lower. Also worth noting is that a large part of the buying will turn to selling as prices rise. Origin selling, if contained in the forward months, has subsided. There has been good forward buying which is probably consumer related.
Please feel free to post other reports as I have limited tools on the road.