Morning Silver Market Report

Compiled 02/13/12 6:00 AM (CT) Statistics: London Gold Fix $1,727.00 +$11.50 LME Copper Stocks 313,500 tons +750 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The March silver contract has a mostly positive track in the early action today, as the European news flow was supportive. However, like gold, the silver market hasn't been able to climb above last Friday's high in the early action today and that in turn has fostered some skepticism. Some of the skepticism might stem from the ongoing protests in Athens in the wake of the latest austerity measures dictated by the EU. At least to start, the silver market is seeing positive outside market forces, with the Euro higher, global equity markets positive and some traders playing up the presence of declining Italian debt yields. Silver and other physical commodity markets won't have the benefit of scheduled US data today, but the markets will see a US Budget release, which is expected to create a political firestorm in Washington. Comex Silver Stocks were 129.117 million ounces down 151,070 ounces. Silver stocks have increased 12 of the last 20 days. The Commitments of Traders Futures and Options report as of February 7th for Silver showed Non-Commercial traders were net long 26,650 contracts, an increase of 5,122 contracts. The Commercial traders were net short 38,851 contracts, an increase of 6,625 contracts. The Non-reportable traders were net long 12,202 contracts, an increase of 1,503 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 38,852 contracts. This represents an increase of 6,625 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Asian equity markets were higher overnight in the face of fresh Euro zone hopes but the Shanghai and New Zealand markets bucked the positive trend. European equity markets were also positive, with a slight decline in Italian yields adding into the modestly upbeat environment. Early US stock market action was also positive, with the markets potentially catching an added technical bid because of the sharp down action seen at the end of last week. In the US trade today the markets won't see any key scheduled US data flows but the US Administration is expected to release its 2013 Budget and that could cause a noted reaction in an election year. From the overnight news wire, the Japanese released a GDP report that generally showed an ongoing contraction but there were some signs of life in Japanese domestic demand within that report.