Bloomberg Access:{OIAR<GO>}

Soybeans:

July soybeans lost 21.75 cents on volume of 347,170 contracts. Total open interest declined by 6,394 contracts, which relative to volume is approximately 25% below average. The May contract lost 1,021 of open interest. Yesterday, the July contract made a high of 10.47 1/2 and a low of $10.11 1/4, which was the lowest print since April 27 (10.10 3/4).

As this report is being compiled on May 6 the July contract is trading sharply higher, up 19.50 cents and has made a daily high of 10.33 3/4, which is substantially below yesterday’s print. We are impressed that soybeans have been unable to break down and today’s low of 10.0 8 1/2 is only slightly below yesterday’s print. As we have said in previous reports, we think soybeans are headed higher, but at this juncture it’s premature to get aboard the bullish side.

WTI crude oil:

June WTI crude oil advanced 54 cents on volume of 1,239,785 contracts. Though volume was the highest seen during the past couple of weeks, the total open interest increase was disappointing, up 13,916 contracts, which relative to volume is approximately 50% below average. The June contract added 3,783 of open interest. Yesterday, the June contract made a high of $46.07 and as this report is being compiled has made a daily high of 45.34 and is trading 48 cents above yesterday’s close. The June contract remains on short and intermediate term sell signals. We have no recommendation.

Gold:

June gold lost $2.10 on volume of 191,764 contracts. Total open interest increased by 1,122 contracts, which relative to volume is approximately 70% below average, but an open interest increase on yesterday’s decline is negative. This is the third such increase in a row when gold prices have declined. The May and June contracts lost 3,953 of open interest, which means there were sufficient open interest increases in the forward months to offset the decline in May and June and increase total open interest.

As this report is being compiled on May 6 the June contract is trading sharply higher, up $24.90 and has made a daily high of 1297.70, which is the highest print since 1303.90 made on May 3. It appears likely that the contract high of 1306.00 made on May 2 will be tested. The impetus for today’s rally was the dismal employment report, which by implication decreases the likelihood of an interest rate hike at the Federal Reserve board meeting in June.

Copper: July copper will generate a short-term sell signal on May 6. It remains on an intermediate term buy signal.

Euro:

The June euro lost 103 pips on volume of 171,947 contracts. Total open interest declined by a massive 10,610 contracts, which relative to volume is approximately 140% above average. As this report is being compiled on May 6 the June contract is trading 26 pips higher on the day. We have no recommendation.

British pound:

The June British pound lost 23 pips on volume of 79,416 contracts. Total open interest declined by 1,101 contracts, which relative to volume is approximately 40% below average. As this report is being compiled on May 6 the June contract is trading 24 pips lower and has made a daily high of 1.4554, which is slightly above yesterday’s print of 1.4531 and the high today was made in reaction to the dismal US employment report. We think the pound is headed lower however, but have not received a short-term sell signal. Stand aside for now.

10 Year Treasury Note: The June 10 year treasury note will generate short and intermediate term buy signals on May 6 provided the daily low remains above OIA’s key pivot point for May 6 of 130-150.

S&P 500 E-mini: The June S&P 500 E-mini will generate a short-term sell signal on May 6 provided the daily high remains below OIA’s key pivot point for May 6 of 2057.95