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Soybeans:

May soybeans gained 16.50 cents on strong volume of 286,973 contracts. Total open interest increased by 4,015 contracts, which relative to volume is approximately 40% less than average. However, the May contract lost 9,466 of open interest, which makes the total open interest increased by more impressive (bullish).

As this report is being compiled on April 2, May soybeans are trading 3.00 cents lower and have not taken out yesterday’s high of 9.91 3/4. For May soybeans to generate a short-term buy signal, the low with the day must be above OIA’s key pivot point for April 2 of 9.90 3/4.

Soybean meal:

May soybean meal gained $5.10 on volume of 103,404 contracts. Total open interest increased by 103 contracts. This is a major disappointment even though the May contract lost 2865 of open interest. As this report is being compiled on April 2, May soybean meal is trading 3.50 lower. For May soybean meal to generate a short-term buy signal, the low of the day must be above OIA’s key pivot point for April 2 of 332.00.

Corn:

May corn gained 5.50 cents on volume of 418,595 contract.Total open interest increased by 12,621 contracts, which relative to volume is approximately 5% above average. The May contract accounted for loss of 4658 of open interest. As this report is being compiled on April 2, May corn is trading 3.25 cents higher. May corn remains on a short and intermediate term sell signal.

Chicago wheat:

May Chicago wheat gained 16.75 cents on strong volume of 137,529 contracts. Total open interest increased by a hefty 5,850 contracts, which relative to volume is approximately 65% above average. There were open interest increases in the May 2015 through September 2016 contracts. The open interest increase on April 1 with the first on a price advance since March 27 when May Chicago wheat advanced 8.50 and total open interest increased by 1,024 contracts. As this report is being compiled on April 2, May Chicago wheat is trading 10.50 higher and has made a daily high of 5.39 1/2, which is the highest print since 5.40 1/2 made on March 23. May Chicago wheat remains on a short term buy signal, but an intermediate term sell signal.

Kansas City wheat:

May Kansas City wheat gained 12.75 cents on strong volume of 38,174 contracts. Total open interest increased by 1,191 contracts, which relative to volume is approximately 20% above average. The May contract lost 2,558 of open interest, which makes the total open interest increase more impressive (bullish). As this report is being compiled on April 2, May Kansas City wheat is trading 11.75 cents higher. May Kansas City wheat remains on a short-term buy signal, but an intermediate-term sell signal.

WTI crude oil:

May WTI crude oil advanced $2.49 on heavy volume of 853,249 contracts. Volume with the strongest since March 26 when May WTI gained 2.22 on volume of 1,004,482 contracts and total open interest declined by 5,340 contracts. On April 1, total open interest increased by just 2,964 contracts. Although, the May contract lost 10,562 of open interest, the total open interest increase of 2964 is a disappointment and indicative of a lack of enthusiasm for the upside.

As this report is being compiled on April 2, May WTI is trading 1.25 cents lower and has made a daily low of 48.11, which is above yesterday’s low of 47.05. Additionally, the high of April 2 is 50.27, which is below yesterday’s high of 50.45 indicating a lack of follow-through from yesterday’s rally. For May WTI to generate a short term buy signal, the low of the day the day must be above OIA’s key pivot point for April 2 of 50.69. May WTI remains on a short and intermediate term sell signal.

Brent crude oil:

May Brent crude oil gained $1.99 on volume of 793,947 contracts. Total open interest increased by 12,163 contracts, which relative to volume is approximately 40% below average. The May contract lost 20,954 of open interest, which makes the more impressive (bullish). However, on April 2, May Brent is trading down $2.25 or -3.49% versus WTI trading 1.98% lower.May Brent crude oil remains on a short and intermediate term sell signal.

Silver:

May silver gained 46.1 cents on volume of 48,808 contracts. Total open interest increased by 1,616 contracts, which relative to volume is approximately 30% above average meaning that aggressive new longs were entering the market in large numbers and driving prices higher (17.075), which is the highest print since 17.195 made on March 27. As this report is being compiled on April 2, May silver is trading 37.9 cents lower and has made a daily low of 16.57, which is above yesterday’s low of 16.50.

Yesterday was the first time since before March 19 that open interest increased on a price advance. However, it appears this may be a sign that market participants entered silver at an inopportune time. Although silver remains on a short and intermediate term buy signal, we continue to be concerned about the head and shoulders formation on the weekly chart. Additionally, there is little enthusiasm for the precious metals in general. Perhaps this will change, but for now we recommend a stand aside posture.

Coffee:

May coffee gained 1.95 cents on volume of 28,805 contracts. Total open interest declined by 441 contracts, which relative to volume is approximately 40% below average. The May contract lost 1227 of open interest and the May 2016 and September 2016 contract lost a total of 79 of open interest.

As this report is being compiled on April 2, coffee has rallied sharply and made a new high for the move of 1.4145, which takes out the previous recent high of 1.4080 of March 27, but the market closed 2.05  cents lower on that day. The rally on April 2 is accompanied by heavy volume, and we will be looking at open interest to see whether large numbers of new buyers were entering the market or whether the rally was based on panic short-sellers liquidating. For May coffee to generate a short-term buy signal, the low of the day must be above OIA’s key pivot point for April 2 of 1.4011.    

S&P 500 E mini:

The June S&P 500 E mini lost 7.75 points on volume of 1,829,056 contracts. Total open interest increased by 25,210 contracts, which relative to volume is approximately 40% less than average. However, an open interest increase on a price decline is bearish and since generating a short-term sell signal on March 26, the open interest action in the E mini has been decidedly negative. Additionally, the market has been unable to mount much of a rally and when it did on March 30 (+23.00 points), total open interest declined by 8,040 contracts. Tomorrow is the employment report and this will be the key driver of trading in a holiday shortened session. The cash market will be closed.