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Soybeans:

January soybeans advanced 38.25 cents on volume of 270,514 contracts. Volume was the strongest since October 31 when January soybeans advanced 19.50 cents on volume of 296,824 contracts and total open interest declined by 2,552 contracts. On November 11, total open interest declined by 68 contracts. The November through March 2015 contracts lost a total of 2,285 of open interest. The unimpressive volume and terrible open interest action only confirms the rally in soybeans has blown out large numbers of short sellers.

As this report is being compiled on November 12, January soybeans are trading 14.50 cents lower after making a new high for the move at 10.86 1/4, which is the highest print since August 11 (10.97 1/4).Despite the move higher, January soybeans have been unable to make a low above OIA’s key pivot point to generate an intermediate term buy signal. In order for January soybeans to generate an intermediate term buy signal, the low the day must be above OIA’s key pivot point for November 12 of 10.46 1/8. January soybeans remain on a short term buy signal. We have no recommendation.

Soybean meal:

December soybean meal advanced $19.70 on volume of 122,193 contracts. Total open interest increased by 3,123 contracts, which relative to volume is average. The December contract accounted for loss of 2,839 of open interest. As this report is being compiled on November 12, December soybean meal is trading $8.30 lower after making a new high of 417.60, and as the pit session opened, the market collapsed and is now trading at 392.20. December soybean meal remains on a short and intermediate term buy signal.We have no recommendation.

Corn:

December corn advanced 4.50 cents on volume of 417,496 contracts. Total open interest increased by 5,298 contracts, which relative to volume is approximately 45% less than average. The December contract accounted for loss of 26,765 of open interest, which makes the total open interest increase more impressive (bullish). As this report is being compiled on November 12, December corn is trading 4.25 cents higher and has made a new high for the move at 3.85. December corn remains on a short and intermediate term buy signal. We have no recommendation.

Chicago wheat:

December Chicago wheat advanced 8.00 cents on heavy volume of 198,876 contracts. Volume was the strongest since August 12 when 201,470 contracts were traded and December Chicago wheat closed at 5.45 1/2. On November 11, total open interest increased by 4,223 contracts, which relative to volume is approximately 20% below average, but an open interest increase on a price advance for Chicago wheat is bullish. Making the total open interest increase more impressive was the fact that the December contract lost 19,724 of open interest.As this report is being compiled on November 12, December Chicago wheat is trading 16.00 cents higher and has made a daily high of 5.45 3/4.In order for a rally to continue, December Chicago wheat must make a low above OIA’s key pivot point for November 12 of 5.42 5/8. Any client holding bearish positions should liquidate these upon the generation of an intermediate term buy signal. December Chicago wheat generated a short-term buy signal on October 17.

WTI crude oil:

December WTI crude oil advanced 54 cents on volume of 633,066 contracts. Total open interest increased by 6,793 contracts, which relative to volume is approximately 50% below average. The December contract accounted for loss of 19,128 of open interest, which makes the total open interest increase more impressive (potentially bullish). However, on November 12, December WTI is trading 62 cents lower and has made a daily low of 76.86, which is above yesterday’s low of 76.42. Stand aside.

Due to the Veterans Day holiday, the EIA will not release its inventory report on November 12.

Natural gas:

December natural gas lost 8 ticks on volume of 415,731 contracts. Volume was slightly below that of November 10 when December natural gas lost 15.7 cents on volume of 427,311 contracts and total open interest declined by 1,073 contracts. The range traded on November 10 was approximately 30 cents whereas the range on November 11 was approximately 20 cents. Remarkably, on November 11, total open interest increased by a massive 14,046 contracts, which relative to volume is approximately 35% above average meaning a major battle ensued between buyers and sellers and neither side was able to move the market much by the close.

This clearly shows a very strong difference of opinion between the 2 camps, which means that natural gas is likely to make a major move shortly. Additionally, the December contract lost 13,780 of open interest. In the November 10 report, we mentioned that the minor decline of open interest was a potential danger sign because it showed that longs were not liquidating as prices moved lower. We remain concerned about this, especially since December natural gas is trading 4.2 cents lower on the day and the daily high has been 4.227, which is considerably below yesterday’s high of 4.311.We have no recommendation at this juncture. Natural gas remains on a short and intermediate term buy signal.

Gold:

December gold advanced $3.20 on fairly heavy volume of 219,341 contracts. Total open interest declined 442 contracts. As this report is being compiled on November 12, December gold is trading $2.10 lower on the day. December gold remains on a short and intermediate term sell signal. Stand aside.

Cotton: March 2015 cotton will generate a short-term sell signal on November 12, which reverses the short-term buy signal generated on October 29. March 2015 cotton remains on an intermediate term sell signal.

Coffee:

December coffee advanced 3.15 cents on very heavy volume of 49,247 contracts. Volume increased from November 10 when 48,697 contracts were traded and December coffee lost 1.00 cent and total open interest declined by 2,905 contracts. On November 11, total open interest increased by only 21 contracts, but it should be noted that the December contract lost 5845 of open interest, which means there were sufficient open interest increases in the forward months to offset the decline in the December contract. We consider the 21 contract increased as a bullish open interest number that supported yesterday’s trading. As this report is being compiled on November 12, December coffee is trading 20 ticks lower on the day.