MI NASAAC stocks analysis: Cancellations remain strong

LME-registered stocks of NASAAC fell by a net 620t last week after two weeks of stock rises. The latter were down to accelerated warranting action at Chicago and although this location did receive another 460t last week—all the weekly inflow—this time it wasn’t enough to offset robust daily draws Strong “out” side action looks set to remain a feature of NASAAC stocks, given robust cancellation activity. Fresh cancellations accelerated to 1,500t last week—the best weekly total since late June—and the cancelled pipeline looks as if it can support draws at Friday’s sort of rate for many more days yet.