from Wealth Wire:
In New York huge lots of commodities get traded every day on the COMEX (Commodity Exchange) between market makers, speculators, producers and consumers.
It can be very confusing – because we can’t know why banker X, trader Y, consumer Z or producer A buys, sells or holds at any given time. There’s lots of noise – and most investors simply will never buy or sell a commodity contract.
It’s somewhat complicated, but one easy way to get a reading on what’s really going on for a specific commodity is to see how many contracts are long, and how many are short.
The chart above shows us that right now, on a net basis, there are more contracts short than at any time during the last two years.