Canada Nickel Company Inc V.CNC

Cash spread

[caramba71]

Found this on another board... Didn't validate it and don't know whether that cash spread is indeed significant, but thought someone here might have some thoughts on this.

'The real shortage: Nickel. The cash spread for immediate delivery is a whopping $508/ton premium for contracts 3 months out - hitting over $22,000/ton. The highest such premium since historic 2007 squeeze. In recent days the premium spread has through the curve. That shows nickel is in more demand even with higher prices. #VALE - #2 and #BHP - #4 nickel resources.'

[EndZonefor7]

Next week will be interesting with Chinese New Year holiday market closures. Could see a big pop.

[CravingProfits]

Caramba...I believe it was posted on this board also a few days ago. No replies though. Glta

[apapas1973]

Caramba, you have to understand the futures markets. Which I'm not an expert in. But when the futures price of a commodity is higher than the spot price, it's in contango. Higher prices ahead as the price rolls forward. Yes I believe it shows strength because the traders feel it will be even higher when that contract comes due or else they wouldn't be paying that premium now. I don'

[caramba71]

Thanks for those explanations. We'll have the partnership announcement before but with a lift in NI price as forecasted via these premiums it might line up well for us. Fingers X-ed.  GTLA