Silver COT Report 9/28/12: Commercials Increase Net Shorts Another 6 Million Ounces!

Submitted by SD Contributor Marshall Swing:

Silver COT Report 9/28/12

Commercials were up 2,567 longs on the week and also accumulated 3,752 shorts to end the week with 45.27% of all open interest, an increase of -0.30% in their share since last week, and now stand as a group at 258,295,000 ounces net short, an addition of another 6,000,000 net short ounces from the previous week


Large speculators added 1,573 longs and 118 short contracts increasing their net long position to 170,050,000 ounces, an increase in their net long position of over 7,275,000 ounces from the prior week.


Small speculators picked up 1,160 longs and a significant 1,430 shorts for a net long position of 88,245,000 ounces a  decrease of just over 1,300,000 ounces net long from the prior week.


Open interest net position changes returned to some semblance of sanity this week although at first glance the commercials picked up significant longs but the majority of those positions were in the swap dealer category rather than the producer merchant.  Remember that it has only been a couple of weeks since the swap dealer held a small net long position.  Short position accumulations were fairly well divided between those two traders.


The number that clearly stands out this week are the short purchases of some small speculators who have bought off on some commentators calling for a correction in the metals.


Also, remembering last week’s report, the swap dealers might have been suspected in a massive short covering last Friday and resumed on Sunday but we do not see evidence of that in this week’s numbers.  Sometimes, it is what you do not see in the COT that tells the story.  The sheer volume of contracts exercised in the raid last Friday and following through Sunday in Asia represents huge positions sold but also bought back at lower prices.  That action, last Sunday evening, was definitely not typical of the Asian market.


As always, for your convenience, if you would like to contact the CFTC and express your views to them, I have provided you their phone numbers and I hope earnestly that you fill up their phone lines: and email addresses as well:


[email protected]  Chairman Gensler


[email protected]  Commissioner Chilton


[email protected]  Commissioner Sommers


[email protected]  Commissioner O’Malia


[email protected]  Commissioner Wetjen


[email protected]  Director Meister


See you next week!