This week also shows the Commercial category in the Legacy COT report.
HOUSTON -- This week’s Commodity Futures Trading Commission (CFTC) disaggregated commitments of traders (DCOT) report was released at 15:30 ET Friday. Our recap of the changes in weekly positioning by the disaggregated trader classes, as compiled by the CFTC, is just below. This week we are also adding in the net positioning of traders the CFTC classes as “Commercial” in the Legacy COT report.
(DCOT Table for May 17, and Legacy COT commercial positioning for data as of the close on Tuesday, May 14. Source CFTC for COT data, Cash Market for gold and silver.) (More...)
In the DCOT table above a net short position shows as a negative figure in red. A net long position shows in black. In the Change column, a negative number indicates either an increase to an existing net short position or a reduction of a net long position. A black figure in the Change column indicates an increase to an existing long position or a reduction of an existing net short position. The way to think of it is that black figures in the Change column are traders getting “longer” and red figures are traders getting less long or shorter.
All of the trader’s positions are calculated net of spreading contracts as of the Tuesday disaggregated COT report.
We also focus on the Legacy COT positioning of traders deemed “Commercial” by the CFTC, which includes Producers, Merchants, Processors and Users, plus Swap Dealers in a single category. The Legacy COT report preceded the Disaggregated COT report and we have tracked and charted it for many years, focusing on the movement and positioning of commercial traders – The “Big Hedgers.” Charts of interest (to us) this week include:
Producers Merchants Processors and Users (PMs), including bullion banks, net position -27,066 lots (27,066 contracts net short). Lowest PM net short position in DCOT history. The previous low was September 16, 2008 at 27,386 contracts net short.
The PMs for silver also. This week the PMs show just 25,710 contracts net short, lowest since October 24, 2006 (24,471 then with $11.57 silver).
Please note: Since the PM net position is a negative number, the higher the blue line the lower the PM net short position.
Producer Merchants in silver are now less net short than they were during the 2008 panic, when silver tested under $9 the ounce.
The Big Hedgers, including bullion banks, had gotten "very small" in the number of their net hedges with gold near $1425 and silver $23.38 in other words.
Both gold and silver have continued lower since then, ending the week near $1360 and $22.26 respectively.
Interestingly, premiums for physical metal on the street exploded higher in 2008, just as they are doing now.
Much more in the charts for GGR Subscribers this weekend.
That is all for now. Carry on.
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