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Soybeans:

July soybeans gained 2.25 cents on volume of 227,668 contracts. Total open interest declined by 1513 contracts, which relative to volume is approximately 65% less than average. The May contract lost 14,823 of open interest, and there were sufficient open interest increases in the forward month to reduce total open interest substantially  below average.We consider the open interest action on April 27 as constructive.

As this report is being compiled on April 28, July soybeans are trading 12.75 cents higher and has made a daily high of 9.88, which takes out the previous high print of 9.85 made on April 23. In order for July soybeans to generate a short-term buy signal, the low of the day must be above OIA’s key pivot point for April 28 of 9.82 3/4. If July soybeans are unable to generate a short-term buy signal, the market will trade sideways to lower.

Soybean oil:

July soybean oil lost two points on volume of 122,348 contracts.Total open interest increased by 724 contracts, which relative to volume is approximately 70% below average. The May contract lost 8669 of open interest and there were sufficient open interest increases in the forward months to bring total open interest to a positive number. We consider the open interest action for soybean oil to be constructive. On April 16, July soybean oil generated a short-term buy signal, but remains on intermediate-term sell signal. As this report is being compiled on April 28, July soybean oil is trading 10 points lower. We have no recommendation.

Corn:

July corn lost 5.00 cents on heavy volume of 490,877 contracts. Total open interest declined by 7,919 contracts, which relative to volume is approximately 35% below average. The May contract lost 39,767 of open interest. As this report is being compiled on April 28, July corn is trading unchanged, but has made another new low for the move of 3.62 1/2, which takes out yesterday’s low of 3.64  1/4. July corn remains on the short and intermediate term sell signal.

Live cattle:

June live cattle lost 92.5 points on light volume of 38,906 contracts. Volume was the weakest since April 15 when 34,723 contracts were traded and June live cattle advanced 1.25 cents while total open interest increased by 1,293 contracts.On April 27, total open interest increased by 986 contracts, which relative to volume is average. The April contract lost 1,239 of open interest, June -182, which makes the total open interest increase more impressive (bearish).

As this report is being compiled on April 28, June live cattle is trading 1.10 cents higher and has made a daily high of 1.51550. June live cattle generated a short-term sell signal on April 13 and for the June contract to generate a short-term buy signal, the low of the day must be above OIA’s key pivot point for April 28 of 1.51375.

Lean hogs:

June lean hogs lost 5 points on volume of 31,634 contracts. Total open interest increased by a massive 1,445 contracts, which relative to volume is approximately 75% above average meaning a battle ensued between buyers and sellers and sellers were able to move the market fractionally lower. The May contract lost 73 of open interest, June -846.

We consider the massive open interest increase as constructive and the June contract made a new high for the move of 80.275 yesterday, which is the highest print since 80.325 made on March 6. On April 24, June and July lean hogs generated a short-term buy signal, but as yet they have not had a setback, which would allow clients to initiate bullish positions. We recommend standing aside until a correction occurs.

WTI crude oil:

June WTI crude oil lost 16 cents on very light volume of 457,800 contracts.Remarkably, volume traded on April 27 was the second lowest of calendar year 2015. The previous low was made on January 2 when 446,248 contracts were traded. On April 27, total open interest declined by 10,932 contracts, which relative to volume is approximately 5% below average. The June contract accounted for loss of 2,398 of open interest. As this report is being compiled on April 28, June WTI is trading 23 cents higher on the day. The market is stalling at the $58 level, and we will be examining the possibility of writing out of the money calls.

Gold:

June gold advanced $28.20 on heavy volume of 228,167 contracts. Total open interest declined by massive 14,095 contracts, which relative to volume is approximately 140% above average meaning liquidation was extremely heavy on the strong advance. The open interest action on April 24 was extremely bearish as well when gold lost 19.30 on volume of 169,234 contracts and total open interest increased by a massive 13,249 contracts. As this report is being compiled on April 28, June gold is trading 9.60 higher and has made a daily high of 1214.90.June gold remains on a short term buy signal, but an intermediate-term sell signal. Stand aside.

Silver:

July silver advanced a very strong 80.3 cents on extremely heavy volume of 123,478 contracts.Volume traded on April 27 was the highest of calendar year 2015. On April 27, total open interest declined by 2,132 contracts, which relative to volume is approximately 25% below average, however the May contract lost 18,254 of open interest, and there were sufficient open interest increases in the forward months to offset a large portion of the decline in May.

As this report is being compiled on April 28, July silver is trading 19.1 cents higher and has made a new high for the move it 16.675. For July silver to generate a short-term buy signal, the low of the day must be above OIA’s key pivot point for April 28 of 16.567. Stand aside.

Dollar index:. On April 27, the June dollar index generated a short-term sell signal, but remains on an intermediate term buy signal.

The June dollar index lost 15.8 points on volume of 40,883 contracts. Total open interest declined by 1,344 contracts, which relative to volume is approximately 25% above average meaning liquidation was heavy on the decline. As this report is being compiled on April 28, the June dollar index is trading 68.6 points lower and has made a daily low of 96.105, which takes up the previous low of 96.315 made on March 26. The next target low is 94.765 made on March 18. Now that the June dollar index is on a short-term sell signal, the market should have a counter trend rally lasting from 1-3 days.We think the dollar is in a longer-term uptrend, and are hesitant to recommend bearish positions.

Euro:

The June euro advanced 12 pips on volume of 201,658 contract. Total open interest declined by 3,591 contracts, what relative to volume is approximately 25% below average. As this report is being compiled on April 28, the June euro is trading sharply higher, up 94 pips, The June euro will not generate a short-term buy signal on April 28 because the low of the day (1.0867) is below OIA’s key pivot point for April 28 of 1.0875.

British Pound: It appears certain the June pound will generate an intermediate term buy signal on April 28. On April 17, OIA announced that the June pound generated a short-term buy signal.

The June British pound advanced 47 pips on volume of 77,810 contracts. Total open interest declined by just 89 contracts. As this report is being compiled on April 28, the June pound is trading 94 pips higher and has made a daily high of 1.5333 and a low of 1.5168, which is above OIA’s key pivot point for the generation of an intermediate term buy signal.

Australian dollar: The June Australian dollar will generate an intermediate term buy signal on April 28 after generating a short term buy signal on April 17. 

The June Australian dollar lost 27 pips on volume of 79,771 contracts. Total open interest declined by 3,016 contracts, which relative to volume is approximately 45% above average meaning liquidation was very heavy on the modest decline. As this report is being compiled on April 28, the June Australian dollar is trading 1.55 cents higher and has made a daily high of 80.04, which takes out the previous high of 79.64 made on January 23, 2015.

Canadian dollar:

The June Canadian dollar advanced 55 pips on volume of 51,503 contract. Total open interest increased by 564 contracts, which relative to volume is approximately 50% below average, however, leverage funds are massively short the Canadian dollar, and this indicates that they are digging in and refusing to liquidate. As this report is being compiled on April 28, the June Canadian dollar is trading higher again, this time by 42 pips and has made a new high for the move at 83.18, which is the highest print since 83.40 made on January 20, 2015. On April 16, OIA announced that the June Canadian dollar generated a short and intermediate term buy signal.

Sugar #11: July sugar will generate a short-term buy signal on April 28 after generating a short-term sell signal on April 21. On April 17, July sugar generated a short-term buy signal.

July sugar advanced 19 points on heavy volume of 180,547 contracts.Total open interest declined by 11,685 contracts, which relative to volume is approximately 150% above average meaning liquidation was extremely heavy as sugar made a new high for the move at 13.39, which has been taken out on April 28 (13.47). The fact there has been three signal changes in less than two weeks is a sign that clients should stay on the sidelines.

Coffee:

July coffee lost 5.10 cents on volume of 31,388 contract. Total open interest increased by a massive 5,320 contracts, which relative to volume is approximately 550% above average meaning huge numbers of new short-sellers were entering the market and driving prices lower. The market action has been terrible, and there doesn’t seem to be the impetus for move higher at this juncture. Remarkably, July coffee remains on a short term buy signal, but an intermediate term sell signal. We recommend a stand aside posture.