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RC COT Report *PIC*

Market activity in RC was the same as KC where specs sold to commercials. The difference between the two markets is that algos don’t operate in RC, imo. Price pattern was also similar to KC. Specs keep selling weakness in both markets but in RC the activity after the COT report is much more dramatic than KC. On Wednesday the OI dropped almost 8,500 lots in RC. Yes, Jan is about to go into delivery period but spec short covering took place irregardless. But, COT reports don’t seem to be a factor. The fact that specs continue to sell new contracts to the strong hands of the commercials and that shorts are quite capable of suddenly buying means little it appears.