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Morning Silver Market Report
Tue 27 Nov 2012 06:19:27 CT
Related Keywords: Metals

Compiled 11/27/12 6:00 AM (CT)

Statistics: London Gold Fix $1,747.25 unchanged LME Copper Stocks -275 tons at 250,325 tons

SILVER MARKET FUNDAMENTALS: (6:00 AM CT) While silver is trading a touch weaker to start this morning, the December silver contract was able to temporarily forge another higher high on the charts overnight. In other words, silver continues to exhibit the capacity to outperform the gold market, especially with silver seeing its open interest climb to another new high for the move at the end of last week. However, silver might have been partially undermined as a result of news that Peru saw an increase in September silver production of just under 4%, versus year ago figures. Perhaps silver is drafting some minor lift off positive action in copper and platinum prices, as industrial metals markets overnight seemed to be rising off the potential for a Greece debt deal. Silver will probably see a noted reaction to US scheduled data flows later this morning, especially since silver seems to be partially tracking industrial market action. On the other hand, gold prices could serve to hold silver prices back in the event that the gold trade comes away from the US data window with fresh concerns of US slowing. Comex Silver Stocks were 141.846 million ounces up 532,180 ounces. Silver stocks have declined 11 of the last 20 days. The Commitments of Traders Futures and Options report as of November 20th for Silver showed Non-Commercial traders were net long 41,302 contracts, an increase of 4,230 contracts. The Commercial traders were net short 59,086 contracts, an increase of 4,704 contracts. The Non-reportable traders were net long 17,784 contracts, an increase of 473 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 59,086 contracts. This represents an increase of 4,703 contracts in the net long position held by these traders.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Hong Kong and Shanghai shares were weaker overnight as concern for tighter Chinese capital rules injured sentiment. European shares were a touch higher off hopes of a deal for Greece, as that potential reduces the prospect of a Greek default directly ahead and that might also allow the markets to focus on a positive kick off to the holiday shopping season. However, US equities were a touch weaker to start, as the trade remains disappointed in the lack of effort to resolve the US fiscal cliff. It is also possible that US equities are a bit off balance today because of expectations for a slight contraction in US Durable goods figures later on this morning. In addition to the Durable Goods report, the US will also release a Chicago Fed Midwest Manufacturing index and there will also be a Fed Chairman speech early in the trading session. Also due out today from the US, is a private home price survey and a Richmond Fed business activity Survey.

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*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.

 
 
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