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Soybeans:

May soybeans gained 5.50 on very heavy volume of 332,725 contracts. Total open interest increased by massive 11,704 contracts, which relative to volume is approximately 40% above average meaning that aggressive new buyers were entering the market in substantial numbers and driving prices higher. The May contract lost 946 of open interest.

As this report is being compiled on April 1, May soybeans are trading sharply higher, up 15.75 cents and have made a daily high of 9.91 3/4, which is the highest print since 9.94 made on March 13.While yesterday’s report was not bullish, the market is shaking out those who were prematurely bearish. Although, May soybeans remain on the short and intermediate term sell signal. We recommend a stand aside posture for now.For May soybeans to generate a short-term buy signal, the low of the day must be above OIA’s key pivot point for April 1 of 9.90 3/4.

Soybean meal:

May soybean meal gained $3.60 on volume of 123,037 contracts. Total open interest increased by 5,937 contracts, which relative to volume is approximately 75% above average meaning that new aggressive buyers were entering the market and driving prices higher. As this report is being compiled on April 1, May soybean meal is trading $4.40 higher, or +1.32% versus soybeans trading +1.75%.For May soybean meal to generate a short-term buy signal, the low of the day must be above OIA’s key pivot point for April 1 of 332.00.

Corn:

May corn lost 18.25 cents on huge volume of 628,348 contracts. Total open interest increased by 13,877 contracts, which relative to volume is approximately 10% below average. The May contract lost 2,797 of open interest. Although the increase of open interest is clearly bearish, the fact that it was below average indicates there was a reluctance on the part of new market participants to make commitments on yesterday’s slide. As this report is being compiled on April 1, May corn is trading 2.75 cents higher and has made a new low for the move of 3.74, which takes out yesterday’s low of 3.75 1/2.From now on there will be an increased focus on potential losses of acreage and weather will become much more important. May corn remains on a short and intermediate term sell signal.

Chicago wheat:

May Chicago wheat lost 18.50 on very heavy volume of 182,604 contracts. Total open interest declined by 1,910 contracts, which relative to volume is approximately 50% below average.As this report is being compiled on April 1, May Chicago wheat is trading 15.75 cents higher.The wheat market has been exceedingly volatile of late having gained 22.50 cents on March 30, +8.50 on March 27 while losing 19.75 cents on March 26. May Chicago wheat remains on a short-term buy signal, but an intermediate term sell signal.

Kansas City wheat:

May Kansas City wheat lost 17.00 cents on volume of 42,126 contracts. Total open interest declined just 292 contracts, which relative to volume is approximately 65% below average. As this report is being compiled on April 1, May Kansas City wheat is trading 13.25 higher. It remains on a short term buy signal, but an intermediate term sell signal.

WTI crude oil:

May WTI crude oil lost $1.08 on volume of 657,896 contracts. Total open interest increased by 4,747 contracts, which relative to volume is approximately 60% below average. The May contract lost 7,433 of open interest. As this report is being compiled after the release of the EIA storage report, May WTI is trading $2.41 higher and has made a daily high 50.45, which is the highest print since 51.38 made on March 27.May WTI will generate a short-term buy signal if the daily low is up of OIA’s key pivot point for April 1 of 50.69.

We think the much ballyhooed projections of $30.00 and $20.00 WTI prices are unrealistic, and with massive storage builds of the past several weeks, the market has not broken down below $40.00.On the continuation chart, the major contract lows during 2015 occurred on January 29 when the March contract made a low of 43.58. On March 18, the April contract made a low of 42.03.

The Energy Information Administration announced that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 4.8 million barrels from the previous week. At 471.4 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 4.3 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 increased by 1.3 million barrels last week and are in the lower half of the average range for this time of year. Propane/propylene inventories rose 2.4 million barrels last week and are well above the upper limit of the average range. Total commercial petroleum inventories increased by 3.2 million barrels last week.

Silver:

May silver lost 7.6 cents on volume of 42,517 contracts. Total open interest declined by 152 contracts, which relative to volume is approximately 80% below average. However, this is the 9th consecutive day of total open interest declines, which began on March 19.

As this report is being compiled on April 1, May silver is trading 37.2 cents higher while June gold is trading + $23.60. May silver remains on a short and intermediate term buy signal while June gold remains on a short and intermediate term sell signal. We continue to advocate a stand aside posture

Coffee:

May coffee gained 55 ticks on volume of 30,251 contracts. Total open interest increased by a massive 1,920 contracts, which relative to volume is approximately 150% above average meaning a battle ensued between buyers and sellers and buyers were able to edge the market slightly higher. As this report is being compiled on April 1, May coffee is trading 1.25 cents higher on the day. Coffee has shown a pattern of advances quickly followed by declines. We are looking for coffee to close near the highs and then see positive follow-through the next day. Additionally, May coffee must make a daily low above OIA’s key pivot point for April 1 of 1.4015 in order to generate a short term buy signal.