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Soybeans:

July soybeans lost 6.50 cents on volume of 239,311 contracts. Total open interest declined by 11,455, which relative to volume is approximately 85% above average meaning liquidation was extremely heavy on Friday’s decline. The July contract lost 17,280 of open interest.

As this report is being compiled on June 22, the July contract is trading 13.50 cents higher and has made a daily high of 9.89 3/4, which is the highest print since 9.90 1/2 made on May 6. On June 17, July soybeans generated a short-term buy signal, and is getting close to generating an intermediate term buy signal. For this to occur, the low of the day must be above OIA’s key pivot point for June 22 of 9.71 7/8.

The COT report revealed that managed money is still heavily short by a ratio of 1.72:1, which means there is plenty of fuel on the part of short-sellers to fund a continued advance.

Soybean oil:

July soybean oil advanced 30 points on volume of 109,177 contracts. Total open interest declined by 1,770 contracts, which relative to volume is approximately 25% below average. The July contract lost 3,628 of open interest and the August through October 2015 contracts lost 808. On June 18, July and August soybean oil generated short-term sell signals, and as is usually the case after the generation of sell signals, the market has a counter trend rally that lasts for 1-3 days. June 22 is the second day of the rally. The short-term sell signals reverse if the low of the day is above OIA’s key pivot point for June 22 of 33.68.

Soybean meal: On June 19, July soybean meal generated an intermediate term buy signal after generating a short term buy signal on June 16.

July soybean meal lost $3.50 on volume of 95,067 contracts. Total open interest declined by 208 contracts, which relative to volume is minuscule and dramatically below average.The July contract lost 6,960 of open interest. As this report is being compiled on June 22, July soybean meal is trading sharply higher, up $8.00, or +2.48% versus soybeans trading 1.62% higher.The strong performance of meal is supporting soybeans, and we expect the rally to continue.

Corn:

July corn lost 4.75 cents on volume of 356,560 contracts. Total open interest increased by 9,015 contracts, which relative to volume is average, but an open interest increase on Friday’s price decline is bearish. The July contract lost 23,947 of open interest, which means there were sufficient open interest increases in the forward months offset the decline in July and increase total open interest to an average number.

As this report is being compiled on June 22, the July contract is trading 4.50 cents higher and has made a daily high of 3.59, which is 1 cent above Friday’s high. For the July contract to generate a short-term buy signal, the low of the day must be above OIA’s key pivot point for June 22 of 3.61 7/8. It appears that corn is getting a bid due to the strength in soybeans, meal and wheat.

Chicago wheat:

July Chicago wheat advanced 0.50 cents on volume of 142,972 contracts. Total open interest declined by 3,086, which relative to volume is approximately 20% below average. The July contract lost 13,922 of open interest. As this report is being compiled on June 22, the July contract is trading 13.25 cents higher, or +2.71% and has made a daily high of 5.04, which is the highest print since 5.03 3/4 made on June 15. Remarkably, the July contract has not generated a short-term sell signal and for this to occur, the high of the day must be below OIA’s key pivot point for June 22 of 4.91 7/8.

WTI crude oil:

August WTI crude oil lost 85 cents on volume of 593,099 contracts. Total open interest declined by 5,639 contracts, which relative to volume is approximately 50% below average. The July contract lost 26,510 of open interest. As this report is being compiled on June 22, the August contract is trading 31 cents higher after making a daily low of 59.27, which is 3 cents above Friday’s low of 59.24. the August contract remains on a short-term sell signal, but and intermediate-term buy signal.

Gold: On June 19, August gold generated a short-term buy signal, but remains on intermediate-term sell signal.

August gold lost 10 cents on volume of 93,207 contracts. Total open interest increased by 2,062 contracts, which relative to volume is approximately 10% below average. As this report is being compiled on June 22, the August contract is trading sharply lower, down $11.20 on the day.We are unconvinced about the viability of the short-term buy signal in gold, especially since platinum continues to make new contract lows and silver is far from generating a short-term buy signal. August gold will generate a short-term sell signal if the daily high is below OIA’s key pivot point for June 22 of 1184.20.

Euro:

The September euro lost 17 pips on volume of 166,640 contracts. Total open interest declined by 4504 contracts, which relative to volume is average. As this report is being compiled on June 22, the September contract is trading 9 pips lower after making a daily high 1.1424, which is slightly above Friday’s high of 1.1416. We recommend that clients review the June 21 weekend report on the euro. The September contract remains on a short and intermediate term buy signal.

British pound:

The September British pound gained 8 pips on volume of 58,831 contracts. Total open interest increased by massive 3,139 contracts, which relative to volume is approximately 105% above average meaning a battle ensued between buyers and sellers and buyers were able to move the September contract fractionally higher. As this report is being compiled on June 22, the September contract is trading 50 pips lower. The September contract remains on a short and intermediate term buy signal.

10 Year Treasury Note:

The September 10 year note advanced 23 points on light volume of 973,045 contracts.Total open interest increased by 21,979 contracts, which relative to volume is approximately 10% below average. As this report is being compiled on June 22, the September contract is trading sharply lower, down 25 points. In the weekend report we wrote about the 10 year note and what it would take for a short-term buy signal to occur. It appears that the rally of the past four days has been a garden-variety correction of the down trend.