Futures
December 3, 2020
HRC Futures: Rally Takes a Breather After Gaining $300 Since Memorial Day
Written by David Feldstein
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. David has over 20 years of trading experience in financial markets and has been active in the ferrous futures space for over eight years. You can learn more at www.thefeldstein.com or add him on twitter @TheFeldstein and on Instragram at #thefeldstein.
An aggressive buyer(s) emerged last Monday (June 29) in CME HR futures. The further loss of tons due to the accident at SDI’s Columbus mill and the longer-than-expected planned maintenance outage at Nucor Gallatin were just learned the week before, so perhaps there was follow-through buying or short covering in relation to the news. However, this buyer was a bit peculiar. This buyer wasn’t interested in the near-term months that would be most affected by these latest production issues, but rather Q2 and Q3 2022 and, as you can see below, the buying pushed some of those months up by twice as much as the closer months.
