Something to ponder for both short and long term players, (if you're into the commodities 'getting squeezed' side of things that is).............(these quotes from Livewire article i just read regarding MLX):
tin futures are in 'backwardation' where the spot contract is the highest priced with longer durations priced more cheaply. This is a relatively rare situation which demonstrates short-term market supply stress. However,on the London Metals Exchange, this situation has persisted for the last 3 months and has now occurred on the 2nd major commodity market in the Shanghai Futures Exchange.
The situation has been supportable in the short term on the LME, as commodity traders could source metals or perform an arbitrage on the SHFE and deliver to the LME. With tin on both exchanges in backwardation, the arbitrage opportunity is not so obvious anymore. Across these two major commodity exchanges, less than 6 days of global tin demand remains in stock. Accordingly, we believe that tin spot prices have the potential to trade at significantly higher prices over the next 1-6 months.
Tin and copper are the two commodities I have been hunting about for exposure to in the speccy end. Preferably I'm looking for cashed up near term production or producing players............
VMS is one I'm heavy in right now and will be holding longer term.............(shout out to @john435 for mentioning VMS a good while ago, I did my DD and liked what I saw, thanks for that john435, PS. hope to see you posting here on STT again soon, I would imagine I'm not the only one to miss your insightful commentary and those wonderful maps you used to post too).
I have been absent from posting much of late, as I felt it necessary to just let myself and the mkt do it's thing, have been reading the STT threads though and as per usual there are many fine posts and posters contributing.............To you all and anyone else just reading on the sidelines I say this: Let us 'own this day' and all others as best we may.
