Short sellers use the basis spread as evidence that prices will fall—but what I read is exactly the opposite. On the $KNC contract, the futures end is actually trading at a discount and dumping, while on the spot side they keep quietly absorbing. One side is spitting it out, the other is swallowing it up. The divergence is so big it’s almost funny. The cheaper the futures get, the more it suggests someone is in a hurry to push prices down to sell. On the spot side, the buy orders are pushing down over the sell orders by a wide margin; active bids are still accelerating into the market. Prices are climbing while riding up past the two moving averages, and momentum lines up perfectly—nothing is falling apart. Once the discount is fully closed, these people will look back at the order book and, chances are, they won’t even get a spot to board.