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Soybeans:

March soybeans advanced 18.75 cents on volume of 98,923 contracts. Total open interest declined by a massive 20,514 contracts, which relative to volume is approximately 640% above average meaning that liquidation was huge on the hefty advance. The May 2015 contract lost 298 of open interest, November 2015 -238.

As this report is being compiled on December 29, March soybeans are trading 0.50 cents lower and have made a daily low of 10.46, which is below two key pivot points. As we have said in prior reports, for March soybeans to continue their advance the March contract must make a daily low above OIA’s key pivot point, which for December 29 is 10.50. For an intermediate term buy signal to be generated, the low the day must be above OIA’s key pivot point for December 29 of 10.52 1/4. The high of 10.68 1/4 on December 29 takes out the previous high print of 10.66 3/4. made on December 10.March soybeans remain on a short term buy signal, but an intermediate term sell signal. Stand aside.

Soybean meal:

March soybean meal advanced $6.10 on volume of 36,281 contracts. Total open interest declined by 4,020 contracts, which relative to volume is approximately 350% above average meaning liquidation was extremely heavy on the advance. The January contract accounted for loss of 6,663 of open interest. As this report is being compiled on December 29, March soybean meal is trading $2.90 lower after making a daily high of 368.10. As we said in prior reports, in order for March soybean meal to continue its advance it had to make a daily low above OIA’s key pivot point. The pivot point for December 29 is 358.70 and the low for the day has been 356.30. March soybean meal remains on a short and intermediate term buy signal.Stand aside.

Soybean oil:

March soybean oil advanced 54 points on volume of 53,604 contracts. Total open interest increased by 528 contracts, which relative to volume is approximately 50% below average. However, the January contract lost 5,308 of open interest and there were sufficient open interest increases in the forward months to offset the decline in January. The open interest action in soybean oil was bullish and was the star of the bean complex.As this report is being compiled on December 29, March soybean oil is trading 44 points higher and has made a daily high of 33.62, which is the highest print since 33.97 made on November 26. In order for March soybean oil to generate a short-term buy signal, the low the day must be above OIA’s key pivot point for December 29 of 32.70. March soybean oil remains on an intermediate term sell signal. Stand aside.

Corn:

March corn advanced 7.00 cents on volume of 71,588 contracts. Total open interest increased by 2,002 contracts, which relative to volume is average. The December 2015 contract lost 1,985 of open interest. As this report is being compiled on December 29, March corn is trading 3.50 cents lower after making a new high for the move at 4.17, which takes out the previous high of 4.15 3/4 made on December 23. March corn remains on a short and intermediate term buy signal. Stand aside.

Chicago wheat:

March Chicago wheat lost 0.75 cents on volume of 27,696 contracts. Total open interest increased by 3,021 contracts, which relative to volume is approximately 340% above average meaning a battle ensued between buyers and sellers and the sellers had the edge by moving prices fractionally lower. The May 2015 contract lost 53 of open interest. As this report is being compiled on December 29, March Chicago wheat is trading 1.00 cent lower. March Chicago wheat remains on a short and intermediate term buy signal. Stand aside.

Live cattle:

February live cattle advanced 1.90 cents on volume of 27,164 contracts. Total open interest declined by 1,075 contracts, which relative to volume is approximately 55% above average meaning that liquidation was substantial on the advance. The December contract lost 562 of open interest, February 2015 -378, April 2015 -446. As this report is being compiled on December 29, February live cattle is trading up the 3.00 cent daily limit. In Friday’s trading, clients were stopped out of their bearish positions as the market penetrated the exit point of 1.61425, which was the high print on December 22. Clients should now be on the sidelines.In order for February live cattle to generate a short-term buy signal, the low the day must be above OIA’s key pivot point for December 29 of 1.66060.

WTI crude oil:

February WTI crude oil lost $1.11 on volume of 201,085 contracts. Total open interest increased by 646 contracts, which is minuscule and dramatically below average. The February contract gained 958 of open interest. As this report is being compiled on December 29, February gold is trading sharply lower, down $1.73, and has taken out the previous contract low of $53.94 and is making new contract lows as this report is being compiled. Stand aside.

Natural gas:

February natural gas lost 3.9 cents on volume of 156,327 contracts. Total open interest declined by 1,618 contracts, which relative to volume is approximately 50% below average. The January contract lost 11,028 of open interest. As this report is being compiled on December 29, February natural gas is trading 13.3 cents higher on colder temperatures in the Midwest. February natural gas remains on a short and intermediate term sell signal. Stand aside.

Gold:

February gold advanced $21.80 on volume of 70,717 contracts. Total open interest increased by 1,721 contracts, which relative to volume is average.As this report is being compiled on December 29, February gold has reversed course and is now trading down $14.30 and has made a daily low of 1178.60, which is above Friday’s low of 1175.20. February gold remains on a short-term buy signal, but an intermediate term sell signal.

Cocoa:

March cocoa lost $23.00 on light holiday volume of 3,785 contracts. Total open interest declined by a hefty 246 contracts, which relative to volume is approximately 150% above average meaning that liquidation was very heavy on the modest decline. As this report is being compiled on December 29, March cocoa has closed at 2964.We caution clients to have protective sell stops in place. Although the price performance has been fine, open interest action prior to December 26 indicated that trade selling was in evidence.

Coffee:

March coffee lost 1.55 cents on light holiday volume of 6575 contracts. Total open interest increased by a massive 931 contracts, which relative to volume is approximately 350% above average meaning that aggressive new short sellers were entering the market in heavy numbers and driving prices lower. As this report is being compiled on December 29, March coffee is trading 3.50 cents lower and has made a new low for the move at 1.6465. March coffee remains on a short and intermediate term sell signal. Stand aside.