As many of you know (who contact me occasionally) I have bee working this run with a series of spreads buying the front and selling the differed months. While it has worked out reasonably well — it has not allowed me the gains to retire. Over the weekend I looked at some of the differentials and will comment on them periodically over the week so stay updated in the Long term section of the web site as I like to keep the Daily — well Daily.
With seasonal history continuing this week expect some additional declines followed by some support buying. As explained over the last few weeks- this is a market that has changed it’s bias and would not expect any major break down in pricing. The outer curve has shown significant support on declines and as long as that sponsorship continues prompt prices are going to have a hard time melting down without the guidance of the differed contracts.