For Bloomberg access:{OIAR<GO>}

Soybeans:

July soybeans lost 9.25 cents on volume of 210,590 contracts. Total open interest declined by a massive 28,343, relative to volume is approximately 445% above average, meaning that liquidation was extremely heavy on the decline. The May contract lost 36,811 of open interest. As this report is being compiled on April 27, July soybeans and trading 5.50 higher. July soybeans remain on the short and intermediate term sell signal.

Soybean oil:

July soybean oil lost 36 points on volume of 115,289 contracts. Total open interest declined by 5,299 contracts, which relative to volume is approximately 75% above average meaning that liquidation was extremely heavy on the decline. The May contract lost 11,539  of open interest. As this report is being compiled on April 27, July soybean oil is trading 10 points higher on the day. Although, July soybean oil is on a short term buy signal and an intermediate-term sell signal, the problem is that bean oil is swimming against the tide of negative bean prices.We see no compelling reason to be involved in the soybean oil market.

Corn:

July corn lost 7.00 cents on heavy volume of 471,553 contracts.Total open interest declined just 3,588 contracts, which relative to volume is approximately 60% below average. However, the May contract lost 46,920 of open interest and there were sufficient open interest increases in the forward months to reduce total open interest substantially below average. The open interest action on April 24 was distinctly negative. As this report is being compiled on April 27, July corn is trading 3.75 cents lower and has made a new low for the move of 3.65. July corn remains on a short and intermediate term sell signal.

Live cattle:

June live cattle advanced 2.175 cents on heavy volume of 60,115 contracts. Total open interest increased by 4,442 contracts, which relative to volume is approximately 185% above average meaning that aggressive new buyers for entering the market in large numbers and driving prices higher (1.51650). The April contract lost 861 of open interest. As this report is being compiled on April 27, June live cattle is trading 1.125 cents lower due to the negative Cattle on Feed report released Friday after the close. On April 13, June live cattle generated a short-term sell signal and continues to be on the sell signal. For this to reverse, the low of the day must be above OIA’s key pivot point for April 27 of 1.51375.

Lean hogs: On April 24, June and July lean hogs generated a short term buy signal, but remained on an intermediate term sell signal.

June lean hogs advanced 1.125 cents on volume of 35,962 contracts. Total open interest increased by 1,378 contracts, which relative to volume is approximately 50% above average meaning that aggressive new longs were entering the market in substantial numbers and driving prices higher (79.700). The June contract lost 1,578 of open interest, which makes the total open interest increase more impressive (bullish).

Now that lean hogs are on a short term buy signal, the market should experience a pullback lasting 1-3 days and this is the opportunity to initiate bullish positions if you are so inclined.Remarkably, June lean hogs are trading 50 points higher despite live cattle trading substantially lower. This underscores the internal strength of the market. Wait for a correction before contemplating bullish positions.

Cotton: On April 24, July cotton generated a short-term buy signal and remains on the intermediate term buy signal.

July, advanced 89 points on volume of 24,989 contracts. Total open interest increased by a massive 3,239 contracts, which relative to volume is approximately 420% above average meaning that aggressive new buyers were entering the market in large numbers and driving prices higher (66.59).The May contract accounted for loss of 188 of open interest.As this report is being compiled on April 27, July cotton is trading higher by 90 points and has made a new high for the move 67.50.  Globally fundamentals are not terribly positive for cotton, but this does not mean that the market cannot continue rally. The moving averages are in a bullish set up: 20 day, 64.70, 50 day, 64.10, 100 day, 62.89, 200 day, 64.22.The 50 day will soon cross above the 200 day, which is bullish. We strongly recommend against initiating bullish positions at current levels. Wait for a correction.

WTI crude oil:

June WTI crude oil lost 59 cents on volume of 732,963 contracts. Total open interest declined by 8,835 contracts, which relative to volume is approximately 45% below average.The June contract lost 13,419 of open interest.As this report is being compiled on April 27, June WTI crude oil is trading 4 cents lower. June WTI remains on the short and intermediate term sell signal. Stand aside.

Brent crude oil:

June Brent crude oil advanced 43 cents on volume of 701,415 contracts. Total open interest declined by a substantial 26,688 contracts, which relative to volume is approximately 50 percent above average, meaning that liquidation was extremely heavy on the modest advance. The June contract lost 15,184 of open interest. As this report is being compiled on April 27, June Brent crude is trading 19 cents lower. The open interest action in the Brent crude contract continues to trade negatively on price advances and declines. June Brent crude remains on a short and intermediate term buy signal. Stand aside.

Copper:

July copper gained 5.10 cents on volume of 78,584 contracts. Total open interest declined by 4,887 contracts, which relative to volume is approximately 140% above average meaning that liquidation was extremely heavy on the sizable advance. On April 22, July copper generated a short-term sell signal, and as is typical after the generation of the sell signal, the market has had a counter trend rally, which is lasted three days. April 27  should be the last day of the rally and prices should head lower from here. For July copper  to reverse the sell signal, the daily low must be above OIA’s key pivot point for April 27 of 2.7806.

Gold:

June gold lost $19.30 on volume of 169,234 contracts. Total open interest increased by 13,249 contracts, which relative to volume is approximately 210% above average meaning that aggressive short-sellers were entering the market in large numbers and driving prices to a new low for the move (1,174.10). However, the story is vastly different on April 27: June gold is trading 31.20 higher and is trading at the highs of the day. It appeared likely based upon Friday’s trading that June gold would be generating a short-term sell signal, however this is not to be on April 27. Additionally, July platinum is trading sharply higher, up 31.70, July silver trading 78 cents above Friday’s close. Stand aside.

Sugar:

July sugar gained 16 points on volume of 147,321 contracts. Total open interest declined by 4,660 contracts, with relative to volume is approximately 10% above average meaning that liquidation was heavier than normal on the minor advance. The May contract accounted for loss of 9149 of open interest. As this report is being compiled on April 27, July sugar has closed at 13.38. In order for July sugar to generate a short-term buy signal, the low of the day must be above OIA’s key pivot point for April 27 of 13.01 and the low on April 27 has been 12.90. July sugar remains on a short and intermediate term sell signal.

July cocoa: On April 27, July cocoa will generate an intermediate term buy signal after generating a short term buy signal on April 14.

July cocoa gained $83.00 on volume of 27,146 contracts. Total open interest increased by 2,000 contracts, which relative to volume is approximately 185% above average meaning that new buyers were heavily entering the market and driving prices to a new high for the move (2888). As this report is being compiled on April 27, July cocoa has made another new high for the move the 2937 and a new closing high of 2922. As we pointed out in the April 21 report, July cocoa was at a major inflection point, and never was able to generate a short-term sell signal

From the April 21 report:

July cocoa is at a critical inflection point, and will generate a short-term sell signal if the daily high is below OIA’s key pivot point for April 22 of 2755. The daily high on April 22 has been 2829.July cocoa generated a short-term buy signal on April 14 and remains on an intermediate term sell signal.”

Coffee:

July coffee advanced 65 ticks on extremely light volume of 17,804 contracts. Total open interest increased by 2,422 contracts, which relative to volume is approximately 450% above average meaning a battle ensued between buyers and sellers and buyers were able to edge the market slightly higher. As this report is being compiled on April 27, July coffee is trading 3.25 cents lower on the day.July coffee remains on a short-term buy signal, but an intermediate term sell signal.