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Corn:

December corn lost 6.25 cents on very heavy volume of 542,054 contracts. Volume exceeded that of August 24 when 493,230 contracts were traded and the December contract closed at 3.80 1/2. On November 9, total open interest declined by a sizable 16,941 contracts, which relative to volume is approximately 10% above average. The December contract accounted for loss of 45,540.

As this report is being compiled after the release of the USDA WASDE report, December corn is trading 5.25 cents lower and has made a new low for the move of 3.58, which is only slightly above the contract low of 3.57 1/2 made on August 12. December corn remains on short and intermediate term sell signals. We have no recommendation.

Chicago wheat:

December Chicago wheat lost 21.50 cents on very heavy volume of 236,825 contracts. Volume exceeded that of June 30 when 230,154 contracts were traded and the December 2015 contract closed at $6.22. On November 9, total open interest declined by 7,117 contracts, which relative to volume is approximately 5% above average. The December contract accounted for loss of 10,885 of open interest.

As this report is being compiled after the release of the USDA report, the December contract is trading 8.00 cents lower and has made a new low for the move of 4.90 3/4, which is the lowest print since 4.93 1/4 made on October 26. Although the December contract will not generate a short-term sell signal on November 10, this is likely tomorrow. For this to occur, the high of the day must be below OIA’s key pivot point for November 10 of 5.0 1 5/8. We have no recommendation.

Soybean complex: OIA will provide coverage of today’s action in the soybean complex in tomorrow’s report.

Cocoa:

December cocoa lost $28.00 on heavy volume of 57,038 contracts. Volume fell from November 6 when December cocoa lost 24.00 on volume of 70,551 contracts and total open interest increased by 683. On November 9, total open interest declined by a sizable 2,654 contracts, which relative to volume is approximately 75% above average, meaning liquidation was extremely heavy on the modest decline. The December contract accounted for loss of 7,146 contracts and is not far away from entering first notice day. As this report is being compiled on November 10, the December contract is trading $3.00 lower. December and March cocoa remain on short and intermediate term buy signals. We have no recommendation.

Sugar #11:

March sugar lost 47 points on volume of 123,488 contracts. Total open interest declined by 6,786 contracts, which relative to volume is approximately 120% above average meaning liquidation was heavy on the large decline. The March contract accounted for loss of 9,181 of open interest and May 2016, May 2017 and July 2017 contracts lost an additional 1,539 of open interest. As this report is being compiled on November 10, March sugar has reversed and is trading sharply higher, up 74 points or +5.29%. March sugar remains on short and intermediate term buy signals. We have no recommendation.

WTI crude oil:

December WTI crude oil lost 42 cents on surprisingly heavy volume of 966,786 contracts. Volume was the strongest since October 13 when 1,048,608 contracts were traded and the December 2015 contract closed at $47.15. On November 9, total open interest declined by 8,777 contracts, which relative to volume is approximately 55% below average. The December contract accounted for loss of 51,682 of open interest.

As this report is being compiled on November 10, the December contract is trading 53 cents higher and has made a daily low of 43.57, which is the lowest print since $43.06 made on October 28. December WTI remains on short and intermediate term sell signals. We have no recommendation.

Silver: On November 9, December and March silver generated intermediate term sell signals after generating short-term sell signals on November 2.

December silver lost 27.8 cents on volume of 62,188 contracts. Total open interest declined by 1,462 contracts, which relative to volume is approximately 10% below average. As this report is being compiled on November 10, the December contract is trading 4.8 cents lower and has made a new low for the move of 14.265, which is the lowest print since $14.240 made on September 15. We think the December or March contract is headed for a test of the December contract low of 13.95.

Dollar index:

The December dollar index lost 18.4 points on volume of 27,602 contracts. Total open interest declined by 478 contracts, which relative to volume is approximately 30% below average. The December contract accounted for loss of 1,091 of open interest and will be entering first notice day shortly.

As this report is being compiled on November 10, the dollar index is trading higher, up 35.4 points and has made a new high for the move of 99.600, which takes out the previous high for the move of 99.470 made on November 6 and is the highest print since 99.630 made on April 21, 2015.

The rapidly appreciating dollar index is going to have major negative knock on effects in the commodity sector and major US corporations that sell goods and services overseas. Unless the slide in the euro, which represents approximately 58% of the movement of the dollar index is arrested, the dollar index will continue to appreciate thereby worsening its impact on the economy and possibly change the Federal Reserves policy about raising rates in December. The December dollar index generated a short-term buy signal on October 23 and an intermediate term buy signal on October 26. We have no recommendation.