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Soybeans:

May soybeans lost 0.75 cents on volume of 192,781 contracts. Total open interest declined by 5,084 contracts, which relative to volume is average.The March contract account for loss of 14,620 of open interest. As this report is being compiled on February 24, May soybeans are trading 17.50 cents higher and have made a new high for the move at 10.32, which is the highest print since 10.31 made on January 13.

On February 20, May soybeans generated a short-term buy signal, and only had an intra-day pullback, which occurred yesterday after making a low of 9.94 1/2. In order for May soybeans to generate an intermediate term buy signal, the low of the day must be above OIA’s key pivot point for February 24 of 10.32 1/8. We have no recommendation.

Soybean meal:

May soybean lost 20 cents on volume of 97,077 contracts. Total open interest declined by 6,721 contracts, which relative to volume is approximately 170% above average meaning that liquidation was extremely heavy on an essentially an unchanged day. The March contract accounted for loss of 10,270 of open interest. As this report is being compiled on February 24, May soybean meal is trading sharply higher, up $7.20, or +2.13% versus soybeans’ gain of 1.77%. On February 19, May soybean meal generated a short-term buy signal, but remains on intermediate term sell signal. For an intermediate term buy signal to be generated, the low of the day must be above OIA’s key pivot point for February 24 of 342.70. We have no recommendation.

Corn:

May corn lost 6.25 cents on volume of 353,276 contracts. Total open interest declined by 4,501 contracts, which relative to volume is approximately 45% below average. The March contract accounted for a loss of 35,171 of open interest, which means there were sufficient open interest increases in the forward months to bring down total open interest substantially below average. As this report is being compiled on February 24, May corn is trading 0.25 cents higher. May corn remains on a short and intermediate term sell signal. Stand aside.

WTI crude oil:

April WTI crude oil lost $1.36 on volume of 1,023,227 contract. Total open interest increased by 11,927 contracts, which relative to volume is approximately 50% below average. The March contract accounted for a loss of just 2 contracts. As this report is being compiled on February 24, April WTI is trading 54 cents higher after making a daily low of 48.68, which is one penny above yesterday’s low. In order for April WTI to generate a short-term sell signal, the high of the day must be below OIA’s key pivot point for February 24 of 48.31. On February 13, April WTI generated a short-term buy signal, but remains on intermediate term sell signal. Stand aside. 

Brent crude oil:

April Brent crude oil lost $1.32 on volume of 829,356 contracts. Total open interest increased by 5,909 contracts, which relative to volume is approximately 60% below average.The April contract lost 934 of open interest.As this report is being compiled on February 24, April Brent crude is trading 10 cents higher on the day and has made a daily low of 58.10, which is slightly below yesterday’s print of 58.37. On February 3, April Brent crude oil generated a short-term buy signal, but remains on intermediate term sell signal. Stand aside.

Gold:

April gold lost $4.10 on volume of 123,756 contracts. Total open interest increased by 4,506 contracts, which relative to volume is approximately 45% above average meaning new short sellers were entering the market in large numbers and driving prices lower. As this report is being compiled on February 24, April gold is trading 4.20 lower and has made a daily low of 1190.00, which is below yesterday’s print of 1190.60.

On February 9, April gold generated a short-term sell signal, and based upon trading thus far on February 24 is likely to generate an intermediate term sell signal today. For this to occur, the high the day must be below OIA’s key pivot point for February 24 of 1207.50 and the high thus far has been 1204.40. 

Silver:

May silver closed unchanged on volume of 67,731 contracts. Total open interest declined by 2,399 contracts, which relative to volume is approximately 40% above average mean liquidation was extremely heavy in yesterday’s trading. Accounting for this was the loss in the March contract of 6,369. As this report is being compiled on February 24, May silver is trading 5.9 cents lower and has made a daily low of 16.085, which is below yesterday’s print of 16.115.On February 18, May silver generated a short-term sell signal and for an intermediate-term sell signal to be generated, the high of day must be below OIA’s key pivot point for February 24 of 16.421. The high thus far has been 16.505. Stand aside.

Cocoa:

May cocoa gained $22.00 on volume of 23,729 contracts. Total open interest increased by 2,561, which relative to volume is approximately 305% above average. The March contract account for loss of 693 of open interest, which makes the total open interest increase more impressive (bullish).

As this report is being compiled after the close, May cocoa has closed at 3010, up $20.00 and is the 14th consecutive day of positive closes.On February 12, May Cocoa generated a short-term buy signal and an intermediate term buy signal on February 17. The market has not had one day of corrective activity, and we continue to recommend a sideline stance.

Coffee:

May coffee lost 4.65 cents on volume of 30,387 contracts. Total open interest increased by 1460 contracts, which relative to volume is approximately 75% above average meaning that new short sellers were entering a market in heavy numbers and driving prices to a new low for the move (1.4790). The March contract lost 299 of open interest, which makes the total open interest increased by more impressive (bearish).

As this report is being compiled after the close, May coffee has closed 65 ticks higher. The low in the March contract on February 24 has been 1.4355, and it will off the board in the next day or two. Conceivably, the low in the March contract may serve as a bottom for the May contract as well. We fully expect to see coffee prices trade north of $2.00 during 2015. May coffee remains on a short and intermediate term sell signal. Stand aside.