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Soybeans:

May soybeans lost 1.75 cents on light volume of 143,540 contracts. Total open interest declined by 3,073 contracts, which relative to volume is approximately 20% below average. As this report is being compiled on March 25, May soybeans are trading 1.50 higher and have made a daily high of 9.87 3/4, which takes out yesterday’s high of 9.85. Stand aside until after the release of the March 31 USDA report. May soybeans remain on a short and intermediate term sell signal.

Soybean meal:

May soybean meal lost $1.00 on volume of 62,906 contracts. Total open interest increased by a massive 4,550 contracts, which relative to volume is approximately 185% above average meaning a battle ensued between buyers and sellers and sellers were able to edge the market lower. As this report is being compiled on March 25, May soybean meal is trading at 20 cents lower on the day. Stand aside until the release of the March 31 USDA report. May soybean meal remains on a short and intermediate term sell signal.

Corn: 

May corn gained 3.00 cents on volume of 245,956 contracts. Total open interest declined by 6,332 contracts, which relative to volume is average.As this report is being compiled on March 25 May corn is trading 1.25 higher and has made a daily high 3.95 1/2, which takes out yesterdays high of 3.93 3/4. It appears that May corn is on the verge of generating a short-term buy signal. For this to occur, the low of the day must the above OIA’s key pivot point for March 25 of 3.92 1/4. We recommend a stand aside posture until after the release of the USDA report on March 31.

Chicago wheat:

May Chicago wheat lost 10.50 on volume of 92,787 contracts. Total open interest increased by 1,668 contracts, which relative to volume is approximately 30% less than average, however an open interest increase on a price decline is bearish. Additionally, while Chicago wheat prices advanced, open interest was declining, which is another bearish confirmation. On March 23, May Chicago wheat generated a short-term buy signal, and remains on intermediate-term sell signal. Stand aside.

Kansas City wheat:

May Kansas City wheat lost 9.25 cents on volume of 20,808 contracts. Total open interest declined by 1,386 contracts, which relative to volume is approximately 160% above average meaning liquidation was extremely heavy on the decline. On March 20, May Kansas City wheat generated a short-term buy signal, but remains on the intermediate term sell signal. Stand aside.

Live cattle:

June live cattle gained 5 points on volume of 47,611 contracts. Total open interest increased by 720 contracts, which relative to volume is approximately 40% below average, however the April contract lost 3027 of open interest, which makes the total open interest increase more impressive (bullish). As this report is being compiled on March 25, June live cattle is trading 60 points lower.On March 23, June live cattle generated an intermediate term buy signal after generating a short-term buy signal on March 5. We have no recommendation.

WTI crude oil:

May WTI crude oil advanced 6 cents on volume of 560,078 contracts. Total open interest declined by 4,034 contracts, which relative to volume is approximately 55% below average. The April contract lost 828 of open interest. As this report is being compiled on March 25, May WTI is trading $1.45 higher and has made a daily high 48.99. The market is rallying even though there was another inventory build per the latest EIA report.May WTI remains on a short and intermediate term sell signal.

The Energy Information Administration announced that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 8.2 million barrels from the previous week. At 466.7 million barrels, U.S. crude oil inventories are at the highest level for this time of year in at least the last 80 years. Total motor gasoline inventories decreased by 2.0 million barrels last week, but are well above the upper limit of the average range. Both finished gasoline inventories and blending components inventories decreased last week. Distillate fuel inventories were unchanged last week and are in the lower half of the average range for this time of year. Propane/propylene inventories rose 0.7 million barrels last week and are well above the upper limit of the average range. Total commercial petroleum inventories increased by 10.6 million barrels last week.

Gold:

June gold advanced $3.70 on volume of 216,779 contracts. Total open interest declined by massive 14,006 contracts, and this was due to the massive liquidation in the April contract of 25,804 contracts as it approaches first notice day. As this report is being compiled on March 25, June gold is trading $5.30 higher and has made a daily high at 1200.30. For June gold to generate a short-term buy signal, the low of the day must the above OIA’s key pivot point for March 25 of 1196.50.Stand aside.

Silver:

May silver gained 9.2 cents on volume of 44,634 contracts. Total open interest declined by 1,464 contracts, which relative to volume is approximately 35% above average meaning liquidation was heavier than normal on the minor advance. However, the decline of open interest on advances has become a well worn pattern since March 19 when May silver commenced its rally. From March 19 through March 24 May silver has advanced $1.442 while total open interest in this time frame has declined by 6,464 contracts. As we said in yesterday’s report, the market is being powered higher by distressed short-sellers. For the rally to continue, silver needs new buyers willing to step up and pay ever higher prices.

Coffee:

May coffee lost 4.55 cents on volume of 32,633 contracts. Total open interest increased by 363 contracts, which relative to volume is approximately 50% below average, but an open interest increase on a price decline is bearish. The May contract loss 1,602 of open interest, which makes the total open interest increase more impressive (bearish). As this report is being compiled on March 25, May coffee is trading 2.50 cents higher. May coffee remains on a short and intermediate term sell signal. Stand aside.