I finnaly figure out how this guy came up with these numbers, he took the open interest multiplied by the price and called that 'futures stockpiles', then he claimed supplies were 'removed from the market', wtf is this guy smoking, goldman aig rogers nobody is taking delivery, they are rolling over a computer input in some database. ask this guy why the amount of acreage devoted to wheat farming is in multi decade lows, I wanna see the answer to that one
The numbers are OI and yes they are pretty accurate. They're also unimportant. What happens when the speculators decide to turn their paper profits into cash? They SELL. And if speculators are already long then who buys the dip? No one except a few shorts. That's why you see "reactions" in big bull markets turn into 40% declines. (ala' Wheat) Old Trader as usual is 100% correct. If there wasn't demand for the "cash market" product then the excess crude (or Corn or Rice ect.) would result in producers selling futures contracts in such mass that prices would auction lower. At some point high prices will cut demand which will increase inventories which in turn will lead to product being sold on the open market which in turn will lead to longs getting smoked. This isn't exactly something new under the sun.....
Daal.. it is obvious from yor moronic respnse that you have no idea what you are talking about. The numbers are acurate.. just because n one i staking delivery doesn't mean that it doesn't add to demand.. the long only index commodity funds are alwasy rolling forward on the long side... so they may not be taking physical delivery but they are adding to demand by buying and never lettin go of their longs.. eventually investors will want to liquidate... and all of this extra open interest will diminish.. however.. they will not add short positions becasue tehy are long only.. I would guess that short only commodity funds could help neutralize the effect but at this point no one would put any money in them.. his numbers are valid due to teh FACT that the CFTC has started a new "Category" for open interest in their weekly COT report...
...and first time drivers. Sheesh, the Chinese are simply THE worst drivers. Lets all just be thankful they won't be driving on our roads.... In the meantime, I'm LONG all U.S. Horse Breeders.
Great video today on Bloomberg from the Libyan oil minister, who knows more about oil and oil markets than anyone on this site. He said speculation was driving this move, and they are stunned at the current price. They have not seen any significant increase in demand, and the market is well supplied. He points out the recent Saudi announcement to increase production by 300,000 barrels caused a spike in the price. He said the price is being set in NY and London, they have nothing to do with it, and it could just as well be $40. There is no oil shortage, there will be one in 10 or 20 years though. This is the Goldman Sucks lets make money scam oil shortage. Pabst is right, when these idiots decide to sell, oil should drop $50 in a week lol.
Me too. We can add every single trained economist on the face of the planet to that as well. On the other side, we have: some politicians in Congress half a dozen losing traders on ET Gee, I wonder who is more likely to be right.
Yeah, I was just shocked by the number of people who didn't see it that way. ...and the conviction with which they held their beliefs.