Silver Futures COT Brief: Week Ending April 3, 2026

Executive summary

This report covers positioning changes in the Silver futures market for the week ending April 3, 2026. Speculative positioning remains moderate, with Managed Money making a minor addition to their net long stance, driven primarily by short-covering. The most significant move came from Swap Dealers, who substantially reduced their large net short position. Overall market participation, as measured by Open Interest, remains subdued and near the lowest levels seen in recent months, although it did tick higher this week. Commercials (Producers/Merchants) continue to maintain a historically light net short position, indicating a lack of aggressive hedging at current price levels.

Positioning

• Managed Money (Speculators): Net long position increased slightly to +11,266 contracts (14,917 long vs 3,651 short). This is a modest bullish stance, well below the peak net long of +21,887 contracts seen in late December 2025, but has recovered from the lows of approximately +4,500 contracts in mid-February.
• Producer/Merchant (Commercials): Net short position stands at -15,492 contracts (2,542 long vs 18,034 short). This is a historically light level of hedging compared to the -25,000 to -26,000 contract net short positions held in late December and early January.
• Swap Dealers: Remain the largest net short in the market at -23,365 contracts (21,552 long vs 44,917 short). While still substantial, this is a reduction from last week's net short of over -25,000 contracts and is well off the highs seen earlier in the year.

Flows and week-over-week changes

• Managed Money: Added a net +108 contracts to their long position. This change was the result of a reduction in both longs (-329) and shorts (-437), indicating that short-covering was the primary driver rather than aggressive new long initiation.
• Swap Dealers: Were the most active players, covering a net 1,681 short contracts. This was achieved by adding 1,005 long contracts while simultaneously cutting 676 short contracts.
• Producer/Merchant: Lightly increased their net short position by 250 contracts, a minor adjustment consisting of reducing longs by 184 contracts and adding 66 shorts.
• Non-reportable (Retail): Reduced their net long position by 662 contracts. They trimmed 90 longs and added 572 shorts, bucking the trend seen in the Managed Money category.

Commercials vs speculators

The classic positioning dichotomy is clearly visible. Speculative categories (Managed Money and Non-reportable) are collectively net long, while Commercials (Producers/Merchants) and Swap Dealers are net short. * The Commercial net short of -15,492 contracts is relatively small, suggesting producers are not heavily hedged and may not view current prices as attractive for locking in future sales. * The Managed Money net long of +11,266 contracts reflects moderate bullish conviction. * Swap Dealers hold a large net short position of -23,365 contracts, effectively taking the other side of speculative longs. Their short-covering activity this week is a notable development.

Open interest and participation

• Total Open Interest (OI) increased by 2,005 contracts to 115,169.
• Despite the weekly increase, overall market participation remains very low. The current OI level is near the bottom of its recent range and is significantly down from the peak of 157,391 contracts reported on January 5, 2026.
• The total number of traders reported was 151, which is also on the low end compared to levels above 200 seen earlier in the year, reinforcing the theme of subdued market participation.

Price context

The price series provided extends to April 2, 2026. The reporting period for this COT data (week ending Tuesday, March 31) saw volatile price action. The front contract price fell from a close of 72.94 on March 25 to a low of 67.82 on March 30, before staging a sharp recovery to 72.555 on March 31. The short-covering by Swap Dealers and the modest net buying from Managed Money align well with this price rebound into the end of the reporting period.

Risks and watchpoints

• Low Open Interest: The low level of overall market participation is a key risk. While it can signify a lack of interest, it can also create an environment where a fresh inflow of capital could lead to outsized price moves.
• Swap Dealer Short Covering: The reduction in the Swap Dealer net short position is a primary factor to watch. Continued short-covering from this large group could provide a significant tailwind for prices.
• Speculative Conviction: Managed Money positioning is not at an extreme. A decisive move above 15,000 net long contracts would signal renewed speculative momentum, whereas a drop back below 8,000 contracts would suggest fading confidence.
• Commercial Hedging: If prices continue to rally, watch for an increase in the Producer/Merchant net short position. A significant expansion of their hedge book could act as a headwind and potentially cap further upside.