Tuesday, March 8, 2011

Silver Deliveries remain rather mediocre - Updated Silver Chart

Data released this morning shows that only 20 deliveries were posted against the March silver contract for tomorrow. That brings the total to a mere 328 since the delivery process began.

I am not seeing much activity in the Against Actuals either but we still have nearly 1,600 contracts left open in the March so that is a possiblity. There were a bit over 1300 done in the May but that is not that big of a deal at this point although I am watching that closely.

There has been some chatter about Morgan supposedly offering cash payments in lieu of deliveries but I am not picking anything up in the EFP category that might confirm that as of yet.

The March remains at a very slight discount to the May and the July but the difference is so close as to be negligible.

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2 comments:

  1. Kid DynamiteMarch 8, 2011 at 9:54 AM

    Dan - with respect to the comment about EFPs - do you mean that the EFP market isn't trading at a premium (physical premium to futures?)

    Is there data available online about silver EFP volumes and levels? Does it even trade liquidly?
    thanks

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  2. Trader DanMarch 8, 2011 at 10:02 AM

    Kid;

    The EFP or AA market is a private negotiated process and thus no information is available to the general trading public. That is the reason that the exchanges also keep a limit on this sort of thing because it is all done off the exchange in the sense that it is done outside of the pit. Volume on this sort of thing is generally rather low.

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