March Silver Futures Open Interest update

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.