For Bloomberg access:{OIAR<GO>}

The weekend report will be released late Sunday afternoon PDT.

The release of the jobs report by the US Department of Labor has caused the dollar index to skyrocket sharply, the 10 year treasury note to drop sharply, which increases the yield and this is negatively affecting the commodity markets.

The dollar index generated a short-term buy signal on October 23 and an intermediate term buy signal on October 26. The 10 year treasury note generated a short-term sell signal on October 29 and an intermediate term sell signal on November 4. We will have a complete wrap-up of Friday’s action in Monday’s report.

Corn:

December corn lost 6.00 cents on heavy volume of 451,927 contracts. During the past three days, volume has exceeded 440,000 each day, and volume traded on November 5 was the highest of the three. On November 5, total open interest increased by a massive 20,629 contracts, which relative to volume is approximately 75% above average meaning huge numbers of new short-sellers were entering the market in large numbers and driving prices lower (3.73 3/4, which is the lowest print since 3.72 made on October 20. The December contract lost 14,777 of open interest, which means there was more than enough open interest increases in the forward months to offset the decline in December and increase total open interest substantially.

Yesterday’s action was bearish, and confirmed that market participants were willing to aggressively enter short positions at the very low end of the trading range.

As this report is being compiled on November 6, the December contract is trading 2.75 cents lower and has made a daily low at 3.70. Looking at the chart, the first area of support would be the September 4 low of 3.60 1/2 and then the contract low of 3.57 1/2 made on August 12. With the dollar index is advancing strongly and likely to make new highs, further pressure will be on corn. December corn remains on short and intermediate term sell signals. We have no recommendation.

Chicago wheat:

December Chicago wheat closed unchanged on extremely heavy volume of 218,983 contracts.Volume was the strongest since August 12 when 214,086 contracts were traded and the December contract closed at 4.97 1/4. On November 5, total open interest declined by 6,183 contracts, which relative to volume is average. The December contract lost 10,487 of open interest. We consider yesterday’s action as neutral.

As this report is being compiled on November 6, the December contract is trading 2.25 cents lower and has made a daily high of 5.25 3/4, which is below yesterday’s print of 5.29 and a daily low of 5.17 3/4, which is below yesterday’s print of 5.20 1/4. The December contract remains on a short-term buy signal, but as we pointed out numerous times in the past, the market has been unable to generate an intermediate term buy signal. With the dollar index trading sharply higher and expectations of a continued advance, a lid will be kept on wheat prices. Additionally, as we pointed out in yesterday’s report Chicago wheat must overcome significant overhead resistance at the 5.30 level going back nearly three months. We have no recommendation.

Soybeans:

January soybeans lost 20.00 on heavy volume of 201,695 contracts.Volume was the strongest since October 29 when the January contract lost 2.50 cents on volume of 305,937 contracts and total open interest declined by 6,571. On October 29, January soybeans generated a short term sell signal.

On November 5, total open interest increased by a massive 12,718 contracts, which relative to volume is approximately 140% above average meaning aggressive new short-sellers were entering the market in very large numbers and driving prices to a new low for the move of 8.63 1/4. The November and May 2016 contracts lost a total of 1,934 of open interest, which means there were sufficient open interest increases in the forward months to offset the decline in the two delivery months and increase open interest substantially.

Additionally, December soybean meal lost $5.40 on volume of 124,996 contracts and total open interest increased massively as well, by 6,701 contracts, which relative to volume is approximately 110% above average meaning that aggressive new short-sellers were entering the soybean market soybean meal market.December soybean meal remains on short and intermediate term sell signals.

As this report is being compiled on November 6, the January contract is trading nearly unchanged, but has made a new low for the move of 8.58, which is 1 cent above the contract low of 8.57 made on September 11.We have no recommendation

Soybean oil:

December soybean oil lost 67 points on volume of 135,362 contracts. Total open interest increased by a sizable 4,625 contracts, which relative to volume is approximately 20% above average meaning that new short-sellers were entering the market and driving prices lower (27.80). The December contract lost 4,687 of open interest, which means there were sufficient open interest increases in the forward months to offset the decline in December and increase total open interest above average. For December soybean oil to generate a short-term sell signal, which would reverse the October 5 short-term buy signal, the high of the day must be below OIA’s key pivot point for November 6 of 27.71. We have no recommendation.

Live cattle: On November 5, December and February live cattle generated short term sell signals, which reversed the October 19 short-term buy signal. Both contracts remain on intermediate term sell signals.

December cattle lost 2.825 cents on extremely heavy volume of 105,209 contracts. Volume was the strongest since October 7 when 102,059 contracts were traded and the December contract closed at 1.36150. On November 5, total open interest declined just 115 contracts, which is a bit surprising considering the volume and the magnitude of the loss. The December and June contracts lost a total of 3,315 of open interest, which means there was almost enough open interest increases in the forward months to offset the decline in the two delivery months.

As this report is being compiled on November 6, the December contract is trading 85 points lower and has made a new low for the move of 1.33225. We have no recommendation.

WTI crude oil:

December WTI crude oil lost $1.12 on heavy volume of 845,633 contracts. Volume was the strongest since October 28 when the December contract gained $2.74 on volume of 865,635 contracts and total open interest increased by 11,416. On November 5, total open interest declined by 6,891 contracts, which relative to volume is approximately 60% below average. The December contract accounted for loss of 18,837 of open interest.

As this report is being compiled on November 6, the December contract is trading 69 cents lower and has made a daily low of 44.24, which takes out yesterday’s low of 45.12 and is the lowest print since $43.06 made on October 28. For the December contract to resume its decline, it must make a daily high below OIA’s key pivot point for November 6 of $45.52 and the high thus far on November 6 has been 45.64. Considering the magnitude of the move in the dollar index on November 6 and crude’s fundamentals, the market is trading rather well. At this juncture, we see no reason to be involved in crude oil.

Yen: On November 5, the December Japanese yen generated an intermediate term sell signal after generating a short-term sell signal on October 23.

The December yen lost 5 pips on volume of 122,775 contracts. Total open interest increased by 5,251 contracts, which relative to volume is approximately 65% above average meaning a battle ensued between buyers and sellers in yesterday’s trading and sellers were able to edge the market slightly lower. As this report is being compiled on November 6, after the release of the employment report by the US Department of Labor, the December contract is trading sharply lower down 106 pips, or -1.29%. We have no recommendation.

British pound: On November 6, the December British pound will generate a short-term sell signal, which reverses the short-term buy signal of October 15. The December pound remains on an intermediate term sell signal.

The December British pound lost 1.71 cents on heavy volume of 152,636 contracts. Volume was the strongest since September 10 when 225,792 contracts were traded and the December contract closed at 1.5460. On November 5, total open interest increased by a sizable 6,023 contracts, which relative to volume is approximately 30% above average meaning aggressive new short-sellers were entering the market and driving prices to a new low for the move of 1.5200.

As this report is being compiled on November 6, the December pound is trading sharply lower again, this time by 1.81 cents and has made a new low for the move of 1.5023, which is the lowest print since 1.5023 made on April 24.From November 4 through November 6, the December pound has fallen a staggering 4.09 cents. We have no recommendation.