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Soybeans:

March soybeans lost 4.00 cents on volume of 194,459 contracts. Total open interest declined by 208 contracts, which is minuscule and dramatically below average. The March contract accounted for a loss of 6,785 contracts. As this report is being compiled on January 26, March soybeans are trading 7.00 cents higher on the day. On January 2, March soybeans generated a short-term sell signal and remains on intermediate-term sell signal. We have no recommendation.

Soybean meal:

March soybean meal advanced $1.40 on volume of 82,612 contracts. Total interest increased by 2,793 contracts, which relative the volume is approximately 35% above average. The March contract accounted for loss of 3,017 of open interest. As this report is being compiled on January 26, March soybean meal is trading $6.30 higher. In the January 5 report, we recommended the initiation of bearish positions. We also recommended that clients employ actual or mental stops to protect profits.

Soybean Oil: On January 23, March soybean oil generated a short-term sell signal, which reversed the short term buy signal of January 6. On January 22, March soybean oil generated an intermediate term sell signal.

March soybean oil lost 37 points on volume of 104,272 contracts. Total open interest increased by 5,726 contracts, which relative the volume is approximately 120% above average, meaning that aggressive new short-sellers were entering the market and driving prices to a new low for the move (31.50). As this report is being compiled on January 26, March soybean oil is trading 47 points lower and has made a new contract low at 31.04.

WTI crude oil:

March WTI crude oil lost 72 cents on volume of 762,248 contracts. Total open interest increased by 3,772 contracts, which relative the volume is approximately 75% below average. The March contract lost 3,553  of open interest. As this report is being compiled on January 26, March WTI is trading 58 cents higher after making a new contract low $44.35. Stand aside.

Natural Gas:

March natural gas advanced 13.1 cents on volume of 326,997 contracts. Volume was the lightest since January 9 when natural gas advanced 1.9 cents on volume of 324,902 contracts and total open interest declined by 1,992 contracts.On January 23, total open interest declined by 10,854 contracts, which relative the volume is approximately 35% about average meaning that liquidation was heavier than normal on the advance. This is bearish. The February contract accounted for loss of 13,598 contracts. As this report is being compiled on January 26 as the eastern seaboard is blanketed with snow, March natural gas is trading 13.8 cents lower and has made a daily low of 2.820, which is above the contract low of 2.762 made on January 22. March natural gas remains on a short and intermediate term sell signal. Stand aside.

Gold:

February gold lost $8.10 on volume of 195,357 contracts. Total open interest declined by 1,872 contracts, which relative the volume is approximately 50% below average. The February contract accounted for a loss of 17,283 of open interest. As this report is being compiled on January 26, February gold is trading 12.30 lower and has made a daily low of 1275.60, which is the lowest print since 1274.20 made on January 20. If clients are on the sidelines waiting for an entry point, setbacks should be used as opportunities to initiate bullish positions. The market is acting well and we see higher prices ahead.

Silver:

March silver lost 6.0 cents on volume 37,160 contracts. Total open interest increased by 813 contracts, which relative the volume is approximately 15% below average. The March contract accounted for loss of 515 of open interest. As this report is being compiled on January 26, March silver is trading 32.0 cents lower and has made a daily low of $17.865, which is the lowest print since 17.890 made on January 22. If clients are on the sidelines waiting for an entry point, setbacks should be used as opportunities to initiate bullish positions. The market is acting well and we see higher prices ahead.

Cocoa:

March cocoa lost $46.00 on heavy volume of 43,046 contracts. Volume was the strongest since January 21 when March cocoa lost 73.00 on volume of 45,086 contracts and total open interest declined by 1,216 contracts. On January 23, total open interest declined again, this time by a massive 7,149 contracts, which relative to volume is approximately 460% above average meaning that liquidation was off the charts heavy on the decline. The March contract loss 5,417 of open interest, May 2015 -1,013, July 2015 -946.On January 22, March cocoa generated a short-term sell signal, and since then has not had a counter trend rally, which would enable clients to initiate bearish positions. On January 26, March cocoa has closed lower at 2737. Do not chase the market. Stand aside.

Coffee:

March coffee advanced 2.50 cents on volume of 24,222 contracts. Total open interest increased by a massive 2956 contracts, which relative the volume is approximately 305% above average, meaning that new buyers were in control and pushed prices higher. The March contract accounted for loss of 221 of open interest. As this report is being compiled on January 26, March coffee is trading unchanged on the day after making a daily high of 1.6525, which is the highest print since 1.6685 made on January 21. The fundamentals for coffee are very strong, and think prices will work their way higher after coffee prices consolidate at the lower end of the trading range. March coffee remains on a short and intermediate term sell signal.

Sugar:

March sugar lost 74 points on very heavy volume of 198,475 contracts. Volume exceeded the January 21 total of 190,135 contracts when March sugar closed 9 points higher and open interest increased by 3,100 contracts. On January 23, total interest declined 4358 contracts, which relative the volume is approximately 15% below average, but it is healthy to see open interest the client along with prices. The March contract accounted for loss of 9,327 of open interest, October 2015 -943. On January 23, March sugar made a daily low of 15.08 and as this report is being compiled on January 26 has not taken out Friday’s low. We think there is a good chance the correction has further to go and would advise against jumping on the bullish bandwagon at this juncture.

From the January 22 report:

“March sugar should find support at the 14.60 level, and we recommend entering a bullish positions near that area.The contract low for March occurred on January 5 at 14.07. It will be important for open interest to decline for Friday’s trading. ”