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Soybeans:

March soybeans gained 10.75 cents on volume of 140,561 contracts. Total open interest increased by a massive 12,234 contracts, which relative to volume is approximately 250% above average, meaning that aggressive buyers were entering the market in large numbers and driving prices higher. However, volume traded on January 26 was the lowest since January 9 with March soybeans advance 4.00 cents on volume of 110,423 contracts and total open interest declined by 3,798 contract. In short, participation was low on the rally. The March 2015 through March 2016 contracts all gained open interest. As this report is being compiled on January 27, March soybeans are trading 8.25 cents lower and has made a daily low of 9.72 1/4. We have no recommendation.

Soybean Meal:

March soybean meal advanced $7.40 on volume of 83,239 contract. Total open interest increased by 6,338 contracts, which relative to volume is approximately 210% above average meaning that aggressive new long were entering the market and driving prices higher. The March 2015 through August 2015 contracts all gained open interest. As this report is being compiled on January 27, March soybean meal is trading $2.30 lower. In the January 5 report, OIA recommended the initiation of bearish positions and have advised clients to maintain protective stops, whether actual or mental stops to protect profits. We think soybean meal prices are headed lower.

Soybean Oil: This will be our final report on soybean oil until we see a signal change or a trading opportunity.

March soybean oil lost 52 points on volume of 102,495 contracts. Total open interest increased by a massive 12,141 contracts, which relative to the volume is approximately 360% above average meaning that aggressive new short-sellers were entering the market in large numbers and driving prices to a new contract low (31.04). The March contract lost 2,260  of open interest, which makes the total open interest increased more impressive (bearish). As this report is being compiled on January 27, March soybean oil is trading eight points higher on the day and has made a new contract low of 30.87. On January 22, March soybean oil generated an intermediate-term sell signal and a short-term sell signal on January 23. Wait until the market rallies before entering bearish positions.

Corn:

March corn lost 2.75 cents on volume of 190,169 contracts. Volume fell dramatically from the previous day (January 23) when March corn advanced 3.00 cents on volume of 314,654 contracts and total open interest increased just 26 contracts. On January 26, total interest declined by 3,472 contracts, which relative the volume is approximately 25% below average. The March contract accounted for loss of 8,212 of open interest, July 2015 -491. As this report is being compiled on January 27, March corn is trading 2.50 lower and has made a daily low of 3.80, which is the lowest print since 3.79 1/2 made on January 16. On January 14, March corn generated a short-term sell signal, but remains on intermediate term by signal. We have no recommendation.

WTI crude oil:

March WTI crude oil lost 44 cents on light volume of 558,583 contracts. Volume was the weakest since January 2 when WTI lost 58 cents on volume of 446,248 contracts and total open interest increase by 6,298 contracts. On January 26, total open interest increased by a massive 20,338 contracts, which relative the volume is approximately 45% above average meaning aggressive new short-sellers were entering the market and driving prices to a new contract low (44.35). The March contract gained 4,005 of open interest. As this report is being compiled on January 27, March WTI is trading 97 cents higher, but has not taken at yesterday’s high of 46.41. Stand aside.

Natural Gas:

March natural gas lost 11.0 cents on light volume of 299,600 contracts. Volume was the weakest since January 6 when natural gas advanced 5.6 cents on volume of 274,265 contracts and total open interest increased by 8,783 contracts. On January 26 total open interest acquired by 2,200 contracts, which relative the volume is approximately 65% below average. The February contract accounted for loss of 6,334 of open interest. As this report is being compiled on January 27 during the snowstorm that is blanketing the East Coast, March natural gas is trading only 10.2 cents higher on the day. The dismal two day performance underscores the weakness of natural gas. March natural gas remains on a short and intermediate term sell signal.

Gold:

February gold lost $13.20 on volume of 240,271 contracts. Total open interest increased by 5,443 contracts, which relative the volume is approximately 10% below average. The February contract lost 25,272 of open interest. As this report is being compiled on January 27, April gold is trading $10.60 higher after making a daily low of 1273.00. We think gold is headed higher, however the path upwards will be rocky with setbacks, which will be opportunities to get long.On December 11, 2014 gold generated a short-term buy signal and an intermediate term buy signal on January 13. Maintain bullish positions.

Silver:

March silver lost 31.7 cents on volume of 38,785 contract. Total open interest increased by 637 contracts, which relative to the volume is approximately 35% below average. As this report is then compiled on January 27, March silver is trading 8.2 cents higher after making a daily low of 17.405,which takes out the previous low print of 17.645 made on January 20, Like gold, we see higher silver prices ahead. On January 13, March silver generated a short-term buy signal and an intermediate term by signal on January 20. Maintain bullish positions.

Cocoa:On January 22, March cocoa generated short-term sell signal remains on an intermediate term sell signal. This will be our final report for cocoa until we report a signal change or a trading opportunity.

March cocoa lost $18.00 on volume of 28,914 contracts. Total open interest declined by 1,424 contracts, which relative the volume is approximately 100% above average meaning that liquidation was extremely heavy on the modest decline. The March contract accounted for loss of 2,826 of open interest. As this report is being compiled on January 27, March cocoa has closed at 2743. Since generating the short-term sell signal, the market has not had a counter trend rally, which would enable clients to initiate bearish positions.

Coffee:

March coffee lost 60 points on volume of 29,249 contracts. Total open interest increased by 651 contracts, which relative the volume is approximately 10% below average. The March contract accounted for loss of 2,219 of open interest. Yesterday, March coffee made a high of 1.6525 and as this report is being compiled on January 27 as made another new high for the move of 1.6850, which is the highest print since 1.7250 made on January 20. We think higher prices are headed higher, perhaps substantially so. However, March coffee remains on a short and intermediate term sell signal. For the short term sell signal to reverse, the low the day must be above OIA’s key pivot point for January 27 of 1.7460.

Sugar: On January 27, March sugar will generate an intermediate term sell signal, which reverses the intermediate term buy signal of January 21.

March sugar advanced 18 points on volume of 156,066 contract. Total open interest declined by 1,418 contracts, which relative to volume is approximately 50% below average. The March contract accounted for loss of 9,720 of open interest. As this report is being compiled on January 27, March sugar has closed at 15.16 and made a daily low of 14.93. The rally will resume if the low of the day in the March contract is above OIA’s key pivot point for January 27 of 15.23. A short term sell signal will be generated if the high of the day is below OIA’s key pivot point for January 27 of 14.91. We don’t think this is likely to occur, however sugar may experience one more day of a correction. Support comes in at the 14.60 area. Managed money remains short sugar by a ratio of 1.19:1.