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The USDA will release its grain stocks and planting intentions report on March 31.

Soybeans:

May soybeans gained 9.75 cents on volume of 161,339 contracts. Total open interest increased by 5,178 contracts, which relative to volume is approximately 35% above average meaning that aggressive new buyers were entering the market and driving prices to a new high for the move (9.90), which is the highest print since 9.94 made on March 13. There were open interest increases in the May 2015 through November 2015 contracts.

As this report is being compiled on March 24, May soybeans are trading 5.25 cents lower and have not taken out yesterday’s high. Although, we think that speculators should position themselves on the short side of the market, the reality is the March 31 grain stocks and planting intentions report is on the horizon, and as a result there may be more two-sided trading. At this juncture, we recommend a sideline stance. May soybeans remain on a short and intermediate term sell signal.

Soybean meal:

May soybean meal gained $3.30 on volume of 57,613 contracts. Total open interest increased by only 147 contracts, which is minuscule and dramatically below average. However, the May contract lost 749 of open interest, which makes the total open interest increased by more impressive (bullish).As this report is being compiled on March 24, May soybean meal is trading 2.30 lower. May soybean meal remains on the short and intermediate term sell signal. Since the USDA report is only one week away, we recommend a sideline stance.

Corn:

May corn gained 5.25 cents on volume of 277,950 contracts. Total open interest increased by 5,713 contracts, which relative to volume is approximately 20% below average. The May contract lost 1760 of open interest. As this report is being compiled on March 24, May corn is trading 2.75 cents higher and has made a daily high of 3.93 3/4, which is the highest print since 3.93 3/4 made on March 11. Like the rest of the grains, we recommend a sideline stance due to the upcoming March 31 USDA report. May corn remains on a short and intermediate term sell signal.

Chicago wheat: On March 23, May Chicago wheat generated a short-term buy signal, but remains on an intermediate term sell signal.

May Chicago wheat advanced 4.00 cents on volume of 81,157 contracts. Total open interest declined by 1,491 contracts, which relative to volume is approximately 25% less than average, however the fact that open interest declined on the advance is negative. For the past two sessions, May Chicago wheat has gained 22.00 cents and total open interest declined on both days by 2,309 contracts.As this report is being compiled on March 24, May wheat is trading 9.25 cents lower, and the market is entitled to a setback considering the magnitude of the four day advance.Stand aside.

Kansas City wheat:

May Kansas City wheat gained 5.00 cents on volume of 19,507 contracts. Total open interest increased by just 45 contracts, however the May contract lost 1,228 of open interest, which makes the minor increase of open interest much more impressive (bullish). Note that open interest increased slightly in Kansas City wheat, but declined in Chicago wheat. As this report is being compiled on March 24, May Kansas City wheat is trading 10.50 lower and is having a normal correction after the four-day rally. On March 20, May Kansas City wheat generated a short-term buy signal, but remains on intermediate-term sell signal.

Live cattle: On March 23, June live cattle generated an intermediate term buy signal after generating a short term buy signal on March 5.

June live cattle gained 2.525 cents on volume of 73,674 contracts. Total open interest increased by 3,561 contracts, which relative to volume is approximately 75% above average meaning that aggressive new longs were entering the live cattle market in heavy numbers and driving prices to a new high for the move (1.53475). The April contract lost 4,816 of open interest, which makes the total open interest increase more impressive (bullish). As this report is being compiled on March 24, June live cattle is trading 50 points lower and has not taken out yesterday’s high.We have no recommendation at this juncture.

WTI crude oil:

May WTI crude oil gained 88 cents on very light volume of 485,236 contracts. Volume was the lowest since January 2 when 446,248 contracts were traded. On March 23, total open interest increased by 7494 contracts, which relative to volume is approximately 40% below average. The April contract accounted for loss of 1,046 of open interest. As this report is being compiled on March 24 May WTI is trading 22 cents higher after making a new high for the move at 48.56, which is the highest print since 49.47 made on March 13. May WTI remains on a short and intermediate term sell signal. Stand aside.

Gold:

April gold gained $3.10 on volume of 217,876 contracts. Total open interest increased by a massive 11,094 contracts, which relative to volume is approximately 105% above average, meaning that aggressive new buyers and sellers were both entering the market in large numbers and buyers were able to edge the market slightly higher. The total open interest increase was disproportionately large compared to the minor increase in price. The April contract lost 11,701 of open interest.

As this report is being compiled on March 24, April gold is trading 4.10 higher and has made a daily high of 1194.50, which is above yesterday’s print of 1191.00. For April gold to generate a short-term buy signal, the low of the day must be above OIA’s key pivot point for March 24 of 1195.80. Stand aside.

Silver:

May silver gained 8 ticks on volume of 46,279 contracts.Total open interest declined by 1,527 contracts, which relative to volume is approximately 35% above average meaning that liquidation was heavy on the nearly unchanged close.For the past three days, May silver has advanced $1.334, but open interest has declined by 5,000 contracts. This is clearly bearish open interest action relative to the very strong advance. In short, distressed short-sellers are powering the market higher rather than new buying. As this report is being compiled on March 24, May silver is trading 6.9 cents higher and has made a daily high of 17.04, which is below yesterday’s high of 17.09. Stand aside.

Copper: On March 23, May copper generated an intermediate term buy signal after generating a short-term buy signal on February 25.

May copper gained 2.85 cents on heavy volume of 82,993 contracts. Total open interest declined by a hefty 3,405 contracts, which relative to volume is approximately 55% above average mean that liquidation was heavy on the advance. After the market posted its settlement price, copper continued to rally to a new high the move of 2.9145. As this report is being compiled on March 24, May copper is trading 45 points higher and has made a daily high of 2.833.We have no recommendation.

Cotton:

May cotton gained 1.23 cents on volume of 28,256 contracts. Total open interest increased by a massive 2,470 contracts, which relative to volume is approximately 240% above average, meaning that aggressive new longs were entering the market and driving prices to a new high for the move (64.55).As this report is being compiled on March 24, May cotton is trading 16 points lower and thus far has made a daily low with 63.61, which is below OIA’s key pivot point for February 19 of 63.68. As a result, May cotton will not generate a short-term buy signal on March 24.

Coffee:

May coffee lost 1.50 cents on very light volume of 14,616 contracts. Total open interest increased by 548 contracts, which relative to volume is approximately 50% above average meaning a battle ensued between buyers and sellers and sellers had the edge by moving prices lower. As this report is being compiled on March 24, May coffee is trading 4.65 cents lower on light volume. For May coffee to generate a short-term buy signal, the low of the day must be above OIA’s key pivot point for March 24 of 1.4501. Stand aside.

S&P 500 E mini: On March 23, the June S&P 500 E mini generated a short-term buy signal and remains on intermediate-term buy signal.