There were no reported deliveries for silver scheduled tomorrow according to exchange data released this morning. There are still 875 contracts open in the March contract, a drop of 23 compared to yesterday. We are running out of days in the month of March so it will be interesting to see how this plays out.
The March contract still remains at a very slight discount to the active May (about half a cent) with the May at a 1.5 cent discount to the July. The structure of the front three silver contracts is one of a slight contango. It does not appear that a squeeze of the March is going to occur. Silver seems to be doing fine without it anyway.
The longer silver remains above the $36 mark, the better the chance of it breaking into another leg higher. It has one line that I can see standing between it and just that, namely $36.50.
The HUI weakness, (thanks to the hedge funds and their spread trades), is weighing a bit on gold and taking some of the pressure off of the silver bears at the Comex. Any move higher by the HUI above 550 will embolden the bulls to try to take out $36.50.
Silver has been in a pattern of late which sees it GAIN strength after the close of pit session trading. Let's see if that pattern holds true today.
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