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Soybean oil:

July soybean oil advanced 1.18 cents on volume of 174,447 contracts. Volume declined from May 29 when the July contract advanced 1.27 cents on volume of 224,730 contracts (the highest volume of 2015) and total open interest increased by 1,840 contracts. On June 1, total open interest increased by massive 9,674 contracts, which relative to volume is approximately 120% above average meaning that huge numbers of new buyers were entering the market and driving prices to a new high for the move of 34.62.

As this report is being compiled on June 2, the July contract is trading 12 points lower after making a new high for the move of 34.94, which is the highest print since 34.94 made on November 4, 2014. The July soybean contract is trading sharply higher, up 17.50 cents or +1.89% while the July soybean meal contract is trading $6.60 higher, or +2.23%.

July soybean oil remains on a short and intermediate term buy signal, but the market is massively overbought. Yesterday’s large increase of open interest at the very high end of the trading range confirms this condition. If not long from substantially lower levels, we recommend a stand aside posture. For clients who subscribe to OIA Direct, please call us for tactical advice.

Chicago wheat:

July Chicago wheat advanced 16.75 cents on volume of 138,257 contracts. Total open interest increased by 1,366 contracts, which relative to volume is approximately 50% below average The July contract lost 3,421 of open interest, which makes the total open interest increase more impressive (bullish). As this report is being compiled on June 2, the July contract is trading sharply higher, up 13.00 cents, or +2.68%. On May 15, July Chicago wheat generated a short-term buy signal, and though it came  close to generating a short-term sell signal on May 29 has been unable to do so.The July contract remains on an intermediate term sell signal though. With the dollar index trading sharply lower on June 2, commodities are getting a bid.We have no recommendation.

Live cattle:

August live cattle advanced 87.5 points on volume of 41,573 contracts. Total open interest increased by 2.195 contracts, which relative to volume is approximately 105% above average meaning large numbers of new buyers were entering the market and pushing prices higher (1.52375. However, yesterday’s high was below that of May 29 (1.53250 and May 28 (1.53400). The June contract accounted for loss of 799 of open interest.

Although the open interest action in cattle is outstanding on price advances the fact remains it has been unable to mount a sustained advance. Based upon this, it is apparent that aggressive selling is keeping a lid on prices. August live cattle remains on a short and intermediate term buy signal, but we see no compelling reason to hold long positions. OIA Direct subscribers, please call for tactical advice.

WTI crude oil:

July WTI crude oil lost 10 cents on volume of 597,299 contracts. Total open interest declined by a substantial 19,596 contracts, which relative to volume is approximately 10% above average. The July contract accounted for loss of 17,735 of open interest.

As this report is being compiled on June 2, with the dollar index trading 1.67% lower, the July contract is getting a bid and trading $1.24 higher. For the July contract to generate a short-term buy signal, which would reverse the May 20 short-term sell signal, the low of the day must be above OIA’s key pivot point for June 2 $60.69. Today the low has been 60.09. The July contract remains on a short-term sell signal, but an intermediate term buy signal.

Brent crude oil:

July Brent crude oil lost 68 cents on volume of 574,503 contracts. Total open interest increased by 13,306, which relative to volume is approximately 10% below average. The July contract gained 1,881 of open interest. As this report is being compiled on June 2, July Brent is trading +1.33% whereas July WTI is trading +2.11%. The open interest action on June 1 in Brent crude was bearish, but favorable in WTI. July Brent crude oil remains on a short-term sell signal, but an intermediate term buy signal.

Euro:

The June euro lost 48 pips on volume of 251,405 contracts. Total open interest declined just 161 contracts. The big story on June 2 is the massive rise in the euro, which is trading 2.51 cents higher, or +2.30% higher. However, based upon a percentage increase, the June Australian dollar is the leader on June 2 with a gain of 1.83 cents or +2.41%.

The question on June 2 is whether today’s massive rally is enough to blow out weak short-sellers, or does the market have another major rally day before resuming its downtrend. For the June euro to generate a short-term buy signal, the low of the day must be above OIA’s key pivot point for June 2 of 1.1187. OIA Direct clients, call for tactical advice.

British Pound:  On June 1, the June and September British pound generated short-term sell signals, but remains on intermediate term buy signals.

The June British pound lost 86 pips on volume of 91,339 contracts. Total open interest increased by 892 contracts, which relative to volume is approximately 50% below average, but an open interest increase on yesterday’s price decline is bearish. Additionally, June 1 was the second day in a row in which total open interest increased by price decline..

As this report is being compiled on June 2, the June pound is trading sharply higher, up 1.53 cents or +1.01%. June 2 is the first day of the typical counter trend rally that occurs after the generation of a sell signal. Conceivably, we may see another rally day tomorrow, but this is likely to be the extent of it.

10 Year Treasury Note: On June 1, the September 10 year treasury note generated an intermediate term sell signal after generating a short-term sell signal on April 29.

The September 10 year treasury note lost 25 points on volume of 1,339,091 contracts. Total open interest declined by 39,402 contracts, which relative to volume is approximately 5% above average. The June contract accounted for loss of 51,814 of open interest. As this report is being compiled on June 2, the September 10 year note is trading 19 points lower and has made a new low for the move of 126-080, which is the lowest print since 126-050 made on May 20.