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The CME released the final report at 12:32 pm CDT, and as a consequence this report will be delayed. Also, it will be truncated in order to expedite delivery.

Soybeans:

November soybeans advanced 3.75 cents on volume of 154,965 contracts. Total open interest declined by 6,039 contracts, which relative to volume is approximately 50% above average meaning that liquidation was heavy on the moderate advance. The September contract lost 8,431 of open interest, November -764. As this report is being compiled on August 25, November soybeans are trading sharply lower and are making new contract lows. Stand aside.

Soybean meal:

December soybean meal advanced $6.20 on heavy volume of 131,157 contracts. Total open interest increased by 5,195 contracts, which relative to volume is approximately 55% above average meaning that new longs were entering the market in significant numbers and driving prices higher. However, it is a very different story on August 25 as December soybean meal is trading 10.10 lower and has made a low of 341.60. As clients know, we have been advising a stand aside posture until such time as December soybean meal generated a short-term buy signal, which never occurred. Continue to stand aside.

Corn:

December corn advanced 2.50 cents on volume of 279,305 contracts. Total open interest declined by a massive 38,862 contracts, which relative to volume is approximately 410% above average, meaning that liquidation was extremely heavy. Accounting for the massive decline of open interest was the September delivery month, which lost 58,207 contracts. As this report is being compiled on August 25, December corn is trading 3.75 cents lower. Stand aside.

Chicago wheat:

December Chicago wheat advanced 6.75 cents on fairly heavy volume of 133,299 contracts. Total open interest declined by 8,779 contracts, which relative to volume is approximately 160% above average, meaning that liquidation was heavy. The September contract accounted for loss of 18,346 of open interest. As this report is being compiled on August 25, December Chicago wheat is trading 7.50 lower. Stand aside.

Live cattle:

October live cattle gained 1.45 cents on volume of 40,729 contracts. Total open interest declined by 957 contracts, which relative to volume is approximately 10% below average. The August contract accounted for loss of 1082 of open interest, December – 2759. The decline of total open interest on the price advance is bearish. As this report is being compiled on August 25 after Friday’s release of the Cattle on Feed Report, October cattle is trading 2.425 cents higher on the day. October cattle remains on a short and intermediate term sell signal. Stand aside.

WTI crude oil:

October WTI crude oil lost 31 cents on light volume of 385,986 contracts. Total open interest increased by 4,767 contracts, which relative to volume is approximately 45% below average. The October contract accounted for loss of 1,203 of open interest. As this report is being compiled on August 25, October WTI is trading 34 cents lower and has made a daily low of 93.05, which is above Friday’s low of 92.92 and 92.50, the low for the move made on August 21. Stand aside.

Natural gas:

October natural gas lost 4.7 cents on volume of 165,390 contracts. Total open interest declined by 4,327 contracts, which relative to volume is average. The September contract accounted for loss of 11,826 of open interest. As this report is being compiled on August 25, October natural gas is trading 8.6 cents higher and conceivably may close at the highs of the day. However, it will not generate a short-term buy signal on August 25. Stand aside.

Copper:

December copper advanced 2.85 cents on volume of 54,971 contracts. Total open interest declined by 1,166 contracts, which relative to volume is approximately 15% below average, but this is the 3rd day in a row that open interest declined beginning on August 20.The September contract accounted for loss of 3,754 of open interest. In short, December copper has advanced 11.60 cents and yet open interest has declined by a total of 7,624 contracts. This is bearish open interest action relative to the price advance. In order for December copper to generate a short-term buy signal, the low for the day must be above OIA’s key pivot point of 3.2330. Stand aside.

Gold:

December gold advanced $4.80 on light pre-Labor Day holiday trading of 96,236 contracts. Total open interest declined by 3,240 contracts, which relative to volume is approximately 35% above average meaning that liquidation was fairly substantial on the modest advance. This underscores the weakness of gold, and confirms that market participants are looking to exit positions on rallies. As this report is being compiled on August 25, December gold is trading $2.50 lower on the day however, it has not taken out Friday’s low of 1274.60. Stand aside.

Silver:

December silver lost 2.9 cents on total volume of 66,714 contracts.Total open interest declined by 987 contracts, which relative to volume is approximately 40% below average. The September contract accounted for loss of 7,349 of open interest. As this report is being compiled on August 25, December silver is trading 3.5 cents lower on the day. Stand aside.

Euro:

The September euro lost 39 pips on heavy volume of 209,156 contracts. Total open interest increased by 4,933 contracts, which relative to volume is approximately 10% below average. As this report is being compiled on August 25, the September euro is trading 47 pips lower and has made a new low for the move at 1.3185. The euro remains on a short and intermediate term sell signal. Stand aside and wait for a rally before considering bearish positions. As tempting as it may be, do not initiate new bearish positions at current prices.

Cotton: On August 22, December cotton generated a short-term buy signal, but remains on an intermediate term sell signal.

December cotton advanced 26 points on light volume of 13,053 contracts. Total open interest increased by a strong 530 contracts, which relative to volume is approximately 55% above average. Making the total open interest increase even more impressive was the October contract losing 12 lots of open interest, December -566.In short new longs were entering the market at above average rates and driving prices higher (66.29). As this report is being compiled on August 25, December cotton is trading unchanged after making a daily low of 65.01 and a high of 66.44, which took out Friday’s print of 66.29.

From the August 24 Weekend Wrap:

“Now that December cotton is on a short-term buy signal, it should have a pullback lasting a day or 2, and this would be the opportunity to establish bullish positions. However, we think the rally is not likely to be a barn burner and therefore clients should not make major commitments. When initiating new bullish positions we recommend using a bull put spread or bull call spread. The first sign of danger for December cotton would be a close below 63.97. In order for cotton to continue to move higher, the December contract needs to close above OIA’s  pivot point 66.64 and then make a daily low above the pivot. After this, closes above OIA’s pivot points of 67.73 and 68.54. As long as cotton continues to advance above these pivot points, the uptrend is intact.”

Coffee:

December coffee lost 2.25 cents on very light volume of 7,794 contracts. It appears that volume traded on Friday was the lowest of 2014.On August 22, total open interest declined by a massive 752 contracts, which relative to volume is approximately 300% above average meaning that large numbers of contracts were liquidated relative to volume. The September contract lost 216 of open interest, December -569. We consider the decline of open interest to be healthy. As this report is being compiled on August 25, December coffee is trading 60 points higher after making a daily low of 1.8545, which is the lowest print since August 20 (1.8285).

From the August 24 Weekend Wrap:

“It has become apparent that coffee is not ready to make its move, but because the market can turn on a dime, we have recommended a small bullish position, which should be liquidated upon penetration of the August 20 low of 1.8285. A close below OIA’s key pivot point of 1.8060, would increase the likelihood of December coffee generating a short-term sell signal.”