Soybeans:

July soybeans lost 5.00 cents and the November contract gained 4.25 on total volume of 162,063 contracts. Total open interest declined by 9,134, which relative to volume is approximately 130% above average meaning that liquidation was heavy. The July contract accounted for loss of 10,978 of open interest. As this report is being compiled on June 23, August soybeans are trading 2.25 cents lower and the November contract is trading down 2.50. The November contract made a high overnight at $12.43 1/2, which is its highest print since May 30 when November reached 12.48 3/4, and closed at 12.33 3/4. August and November soybeans are short-term sell signals, but both remain on intermediate term buy signals. Stand aside.

Soybean meal:

July soybean meal gained $8.00 on volume of 94,813 contracts. Volume jumped from the 66,586 contracts traded on June 19 when July soybean meal lost 2.00 and total open interest increased by 1,084 contracts. On June 20, total open interest declined by 3,239 contracts, which relative to volume is approximately 40% above average meaning that liquidation was heavy on the advance.The July contract accounted for loss of 11,065 of open interest. On June 20, July soybean meal made a new low for the move at $445.00, and in the last 15 minutes rallied sharply to make a high of 465.90, which is the highest print since 472.30 made on June 16. As this report is being compiled on June 23, the high of June 20 has not been taken out. August soybean meal is on a short-term sell signal, but an intermediate term buy signal. Stand aside.

Soybeans and soybean meal continue to be on intermediate term buy signals, which increase the possibility there could be another thrust higher before soybeans and soybean meal resume their downtrend. 

Soybean oil:

August soybean oil lost 48 points on volume of 91,861 contracts. Total open interest declined by 10,151 contracts, which relative to volume is approximately 340% above average. The July contract accounted for loss of 10,709 of open interest. As this report is being compiled on June 23, August soybean oil is trading 57 points higher and hass made a new high for the move at 41.08, which is the highest print since May 23 (41.16). August soybean oil will generate a short-term buy signal on June 23, and will remain on an intermediate term sell signal. We want to see positive spread action between August  2014 and December 2014 contracts with August continuing to gain on December. Stand aside.

Corn:

July corn gained 2.75 cents on volume of 276,772 contracts. Total open interest declined by a massive 31,532 contracts, which relative to volume is approximately 350% above average meaning that liquidation was off the charts heavy on the modest advance.The July contract lost 38,265 of open interest. July corn made a high of 4.53 3/4, which is the highest print since June 10 when July corn made a high of 4.55. As this report is being compiled on June 23, July corn is trading 7.50 lower on the day after making a new high for the move at 4.57 3/4. September corn remains on a short and intermediate term sell signal.

Live cattle:

August live cattle lost 1.150 cents on light volume of 39,887 contracts. Total open interest declined by 1,137 contracts, which relative to volume is approximately 5% above average. The June contract lost 1,011 of open interest and August -2512. August cattle made a high of 1.47850, which was just shy of the contract high of 1.48025 made on June 19.As this report is being compiled on June 23, August cattle is trading 57.5 points higher and has made a daily high of 1.47200, which is below Friday’s high. Stand aside.

WTI crude oil:

August WTI crude oil advanced 78 cents on light volume of 490,372 contracts. Volume was the lowest since June 11 when July WTI crude oil advanced 5 cents on volume of 480,015 contracts and total open interest increased by 13,790.On June 20, total open interest increased only 261 contracts, which is minuscule and dramatically below average. The July contract accounted for loss of 19,265 of open interest and surprisingly the August contract, which has the largest amount of outstanding contracts of any month traded in the WTI contract lost 3286 of open interest.

For the past 2 days, August WTI crude oil has advanced $1.24, yet total open interest has declined by 8,569. From June 18 through June 20, August WTI has advanced $2.05, but total open interest has declined by 1,996 contracts. This is bearish open interest action relative to the price advance. Additionally, on June 20 the August contract made a high of 106.93, which is the highest print since 107.54 made on June 16, which was just below the contract high of 107.68 made on June 13. As this report is being compiled on June 23, August WTI is trading 73 cents lower and has made a daily low of 105.91, which is above the low made on June 20 of 105.81. We continue to advise a stand aside posture.

Brent crude oil:

August Brent crude oil lost 25 cents on light volume of 583,435 contracts. Volume was the lowest since June 16 when 542,160 contracts were traded. On June 20, total open interest exploded by 22,394 contracts, which relative to volume is approximately 50% above average. The August contract added 311 of open interest. On June 20, August Brent made a high of $115 and on June 23 has made a high of 115.66, which is shy of its contract high of 115.71 made on June 19. Like WTI, we recommend a stand aside posture in Brent.

Natural gas:

August natural gas lost 5.3 cents on fairly light volume of 220,625 contracts. Total open interest increased by 1,619 contracts, which relative to volume is approximately 60% below average. The July contract lost 10,457 of open interest. As this report is being compiled on June 23, August natural gas is trading 7.7 cents lower. As we been saying for the past couple of reports, natural gas has been headed for a short-term sell signal, and it appears this will occur on June 23. It is likely that an intermediate term sell signal will be generated on June 23 as well. The seasonal low for natural gas tends to occur in July, and we will be monitoring the market closely to determine when natural gas is close to a bottom.

Copper:  September copper will generate a short and intermediate term buy signal on June 23.

July copper advanced 4.30 cents on volume of 72,357 contracts. Total open interest declined by 1324 contracts, which relative to volume is approximately 25% below average. However, the open interest decline on the advance to a new high for the move is bearish. July copper began rallying on June 13 and through June 20 has advanced 10.60 cents while total open interest declined by 10.645 contracts. This is very negative open interest action relative to the price advance.

As this report is being compiled on June 23, September copper is trading 3.60 cents higher on the day and has made a new high for the move at $3.1515, which is the highest print since $3.1585 made on June 3, 2014.The reason for the sharp advance is being attributed to the flash PMI reading of 50.8 versus the consensus of 49.7. This is the first time since December 2013 that the flash PMI number has been above 50.The market is massively overbought and because it is now on a short and intermediate term buy signal, copper should have a healthy correction lasting from 1-3 days. Stand aside.

Gold: On June 20, August gold generated a short and intermediate term buy signal.

August gold gained $2.50 on healthy volume of 172,822 contracts. Total open interest declined by 483 contracts, which is minuscule and dramatically below average. On June 20, August gold made a high of $1322.50, which is 50 cents above the high made on June 19. As this report is being compiled, August gold is trading down $2.10 and has made a daily low of 1310.40, which is above 1307.10, the low made on June 20. Gold has not taken out the June 20 high. August gold is overbought, and now that it is on a short and intermediate term buy signal, we expect a pullback lasting from 1-3 days. This is the opportunity to initiate bullish positions.

Platinum:

July platinum closed $17.20 lower on heavy volume of 17,493 contracts. Volume was below that of June 19 when July platinum advanced $23.70 on volume of 19,124 contracts and total open interest increased by 267 contracts. On June 20, open interest increased by 86 contracts, which is minuscule and dramatically below average. The July contract accounted for loss of 2,814 of open interest. The slight open interest increase on Fridays decline is bearish, and because managed money is long by a ratio of 10.82:1, it appears they are digging in and refusing to liquidate. A large total open interest decline would put the market on much healthier footing. However, July platinum remains on a short and intermediate term buy signal. Stand aside.

Silver: On June 20, September silver generated an intermediate term buy signal after generating a short-term buy signal on June 13.

September silver closed 30.2 cents higher on heavy volume of 109,636 contracts. Volume declined from the 117,386 contracts traded on June 19 when silver advanced 87 cents and total open interest increased by 1850 contracts. On June 20, total open interest declined only 265 contracts, which is minuscule and dramatically below average. The July contract accounted for a loss of 5419 of open interest, and there was sufficient open interest increases in the forward months to offset the decline in the July contract. As this report is being compiled on June 23, September silver is trading 3.5 cents lower on the day and has not taken out Friday’s high of $21.025. Continue to hold bullish positions recommended in the June 16 report.