As the nearby backwardation goes deeper, stocks surge higher LME stock increases have continued. On previous occasions this year, we might have attributed this action to warehouse financing activity, but the wide geographical spread of delivery locations during the latest spell of inflows makes this unlikely. Moreover, the presence of a large, and widening, backwardation is reason enough to explain the stock rises. Where there is some debate, however, is the motivation behind the inflows.
展开▼
