We saw early stability to continue the recent upward theme, and on this move March’20 traded to 13.51, placing it a point above the previous front month high for the year while also representing the highest level for the March’20 contract since early July. A prolonged period was then spent in the vicinity of 12.50 however there was insufficient buying to punch beyond with prices eventually retreating back into the 13.40’s. The decline then continued into the afternoon leading March to a session low of 13.28 and the March/May spread to -0.08 pts, the first negative action seen for over a week and maybe an indication that some cooling activity is required following six successive days of gains. There followed some defensive action with the shorter-term specs pulling values back to within a few points of overnight during the final couple of hours though we remained marginally lower on the close basis the spot March to end the recent run of consecutive front month gains. Interestingly the March spreads remained weaker which may suggest that the move is tiring somewhat, and if we are unable to break above the continuation double top 13.50/13.51 in the coming days then further corrective action could well follow.
