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Soybeans:

July soybeans advanced 11.50 cents on volume of 151,579 contracts. Total open interest increased by 8,720 contracts, which relative to volume is approximately 135% above average, meaning that aggressive new buyers were entering the market in large numbers and driving prices higher (9.78 3/4). The May contract lost 2,447 of open interest, which makes the total open interest increase more impressive ( bullish).

As this report is being compiled on May 5, July soybeans are trading 3.25 higher and have made a daily high 9.81 1/2, which is the highest print since 9.95 made on April 30. Although, July soybeans remain on a short and intermediate term sell signal, the strength of soybean oil and the July-August 2015 spread cautions us to recommend a stand aside posture.

Soybean oil: July soybean oil will generate an intermediate term buy signal if the low of the day is above OIA’s key pivot point for May 5 of 32.03.

July soybean oil advanced 1.05 cents on volume of 133,622 contract.total open interest increased by a massive 9,616 contracts, which relative to volume is approximately 85% above average. The May contract lost 510 of open interest, which makes the total open interest increase more impressive (bullish).The July contract made a high of 32.70 in yesterday’s trading, and as this report is being compiled on May 5, July soybean oil is making new highs for the move of 33.38, which is the highest print since 33.27 made on March 4.On April 16, OIA announced that July soybean oil generated a short-term by signal and it appears a certainty an intermediate term buy signal will be generated in today’s trading.

Corn:

July corn lost 1.75 cents on volume of 214,715 contracts. Total open interest increased by 7112 contracts, which relative to volume is approximately 30% above average meaning aggressive new short-sellers were entering the market in fairly substantial numbers and driving prices to new low for the move (3.60). As this report is being compiled on May 5, July corn is trading 3.50 lower and has made a new low for the move of 3.55 3/4, which is several cents above the contract low of 3.47 made on October 1, 2014.

Live cattle:

June live cattle advanced 1.55 cents on very light volume of 35,074 contract. Total open interest increased by 1,293 contracts, which relative to volume is approximately 45% above average meaning that aggressive new buyers were entering the market in substantial numbers and driving prices higher (1.51000). The June contract lost 1,717 of open interest, which makes the total open interest increase more impressive (bullish).

As this report is being compiled on May 5, June live cattle is trading slightly above unchanged on the day. Although the June contract has made attempts at breaking out of its current range, it has been unable to do so. As a consequence, June live cattle remains on a short-term sell signal and an intermediate term buy signal.

Lean hogs:

June lean hogs lost 57.5 points on very light volume of 27,809 contracts. Total open interest declined by 373, which relative to volume is approximately 45% below average. The May contract lost 53 of open interest, June -2293. As this report is being compiled on May 5, June lean hogs is trading sharply higher, up 1.10 cents and made a new high of 83.100.

On April 24, OIA announced that June and July lean hogs generated short-term buy signals and intermediate term buy signals on April 29.The open interest action in lean hogs has not been very positive of late, but price action has been outstanding. There is a large degree of skepticism in the lean hog market and it’s perfectly understandable due to the extended bear market. However, this has changed and we see higher prices ahead.

WTI crude oil:

June WTI crude oil lost 22 cents on very light volume of 395,171 contracts. Total open interest increased by 13,375 contracts, which relative to volume is approximately 35% above average meaning a battle ensued between buyers and sellers and sellers were able to edge the market slightly lower. The June contract lost 4,396 of open interest. As this report is being compiled on May 5, June WTI is trading $1.80 higher and has made a new high for the move of 61.10 which takes out the May 1 high of 59.90.On April 7, OIA announced that June WTI crude oil generated a short-term buy signal and an intermediate term buy signal on April 14. Do not chase the rally.

Natural gas:

June natural gas advanced 4.5 cents on volume of 189,937 contracts. Total open interest declined by 581 contracts, which relative to volume is approximately 85% below average. The June contract lost 3,540 of open interest. As this report is being compiled on May 5, June natural gas is trading 4.7 cents lower after making a daily high of 2.821, which is slightly below yesterday’s high of 2.824. On May 1, June natural gas generated a short-term buy signal, and it appears that May 5 may be the first day of the pullback. Stand aside and wait for more of the correction before contemplating bullish positions.

Euro:

The June euro lost 53 pips on light volume of 176,028 contracts. Total open interest increased by 663 contracts, which relative to volume is approximately 80% below average. As this report is being compiled on May 5, the June euro is trading 64 pips higher, and appears to be on its way to testing the May 1 high of 1.1297. On April 29, OIA announced that the June euro generated a short-term buy signal and an intermediate term buy signal on May 1.

Yen: On May 4, the June yen generated a short and intermediate term sell signal. We expect a counter trend rally of 1-3 days before the yen resumes its move lower.

The June yen gained 12 pips unlike volume of 70,165 contracts. Total open interest declined by 2,809 contracts, which relative to volume is approximately 55% above average meaning there was a substantial amount of liquidation during a very narrow range trading day (21 pips). As this report is being compiled on May 5, the June yen is having a counter trend rally and trading 18 pips higher.