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September 24, 2020
Hot Rolled Futures: October Pushes to New Highs Shifting Curve into Backwardation
Written by David Feldstein
Editor’s note: 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 for eight years. David earned an MBA from the University of Chicago Booth School of Business with concentrations in economics, statistics and analytical finance.
The September CME Midwest HRC future is set to settle the month somewhere between $544 and $550 depending on next Wednesday’s CRU Index. That will be an increase of $93-$99/st over August’s CME HR future settlement of $451. What a five-weeks it has been! We haven’t seen a comeback this amazing since Super Bowl LI. “Availability” has become the buzzword of September as suddenly there is no steel. The rolling 2nd month future has broken above its multi-year down trend with authority gaining $30 since my last article on September 3. The red line is the next resistance level just above $600.
