Figures released by the exchange this morning show another reduction in the March silver futures contract. Total open interest in that month dropped to 2,833, down 1,417 contracts. Thus far no sign of a squeeze in that particular month. Even at that, silver is very strong on the charts.
There were a total of 42 delivery notices issued yesterday bringing the total deliveries for March to 294 or 1.47 million ounces. The biggest stopper was The Bank of Nova Scotia. Deutsche and Morgan were the biggest issuers. So far, this process seems orderly with nothing remarkable standing out just yet.
Interestingly enough, the May/July spread has tightened on today's move higher with the May moving to a one cent premium to the July. This spread has been very volatile moving into backwardation and back into contango throughout the session. I am still keeping a close watch on the board structure of the first three months here to watch for anything significant that might indicate that the remaining shorts in the March contract might be in trouble.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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