HRC Futures: Insatiable Rally…July HRC Trades at $1,665

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.

This charts shows the rolling 2nd month CME Midwest HRC future (white) and the total aggregated open interest in short tons (yellow) for all CME Midwest HRC futures contract months. If open interest is unfamiliar to you, it provides how many outstanding futures contracts there are at the end of each day. If a contract has zero open interest and there is a trade for 200 tons between buyer A and seller B, then there will now be 200 tons of open interest posted at the end of the day. If the next day, seller B buys back 200 tons from seller G, there is still 200 tons of open interest. If the following Monday, buyer A sells 100 tons back to seller G, then both will have realized a gain or a loss on the 100 tons traded and open interest decreases to 100 tons.