It appears the phenomenon has just re-emerged, as Wednesday’s COMEX Open Interest data reveals a 579 contract decreased in the now front-month May contract, along with a corresponding 500 contract INCREASE in the March & April contracts.
Add in the 364 March delivery notices that were issued Wednesday, and the March & April contracts saw a combined 864 contract increase on the day.
This implies that the ENTIRE 579 contract reduction in May silver OI was rolled backwards to March & April.
With total SHFE silver inventories down to only 9 million oz, and COMEX registered down only 78 million oz, it appears that longs are once again beginning to become unwilling to wait until the COMEX front-month contract first notice day to stand for delivery of physical silver.
The CME’s shenanigans at the end of November & February of HALTING metals trading just prior to First Notice Day certainly isn’t helping instill any confidence in the COMEX.
We will continue to monitor the COMEX OI data closely to see if rolling backwards in COMEX Silver accelerates.
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