Ferrous Futures: Busheling and Hot Rolled Futures Continue Higher Despite Massive Risks

SMU Contributor David Feldstein is president of Rock Trading Advisors (davidfeldstein@rocktradingadvisors.com, twitter @TheFeldstein). In addition to market analysis, RTA provides price risk management not only for ferrous products, but also base metals, energy and interest rates. RTA also trains sales staff and creates the infrastructure necessary for firms to offer their customers fixed pricing on physical sales.

The amazing run in CME busheling has continued to reach new highs after the May future settled +$37 at $310. The curve below shows a flat curve around $300 at the start of the year (green). As markets sold off and COVID exploded, the curve crashed with June trading as low as $220 before rocketing back to last night’s settlement (red) at $338. The curve has shifted into a steepening backwardation (downward sloping).

David Feldstein

SMU Contributor David Feldstein is president of Rock Trading Advisors. David has over 20 years of financial market trading experience and has been active in the ferrous futures space since 2012. Feldstein earned an MBA from the University of Chicago Booth School of Business with concentrations in economics, statistics and analytical finance. He can be reached at davefeldstein@gmail.com.