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The upcoming Weekend Wrap will be released on Sunday afternoon.

Soybeans:

September soybeans gained 54.75 cents on volume of 197,000 contracts. Volume was the highest since August 1 when 266,281 contracts were traded and soybeans declined by 18.00 cents while open interest increased 1,016 contracts. Additionally, volume picked up approximately by 36,000 contracts from August 8 when soybeans advanced 23.25 cents and open interest declined by 9,965 contracts.  On August 9, open interest increased 2421, which was the first time since August 3 when soybeans gained 12.25 cents and open interest increased by 2,368 contracts. The USDA released its report and as this is being written on August 10, September soybeans have advanced 19.75 cents.

Soybean meal:

December soybean meal gained $16.90 on volume of 84,702 contracts. Volume was the highest since August 1 when 95,384 contracts were traded and soybean meal declined by $3.30 while open interest declined 3,269 contracts. On August 9, open interest increased by 4,690 contracts, which in relation to volume is 90% above average. The action yesterday was very strong and though volume was less than half of soybeans, open interest increased nearly twice as much. As this report is being written on August 10, soybean meal is trading down 20 cents.

Corn:

December corn gained 7.25 cents on volume of 351,164 contracts. Volume was the highest since July 20 when 371,385 contracts were traded and corn advanced 16.75 cents while open interest increased by 8421 contracts. On July 20, corn reached its all-time high of $8.28 3/4. On August 9, open interest advanced 6,805 contracts, which in relation to volume is 35% below average. The USDA released its report and December corn made a spike high top of $8.49. As this report is being written on August 10, corn is trading 4.75 cents lower at $8.19.

Wheat:

December wheat closed 13.75 cents higher on heavy volume of 164,526 contracts. Although volume decreased by approximately 5,000 contracts from August 8, it was among the highest of the past three weeks. On August 9, open interest increased by 1,774 contracts, which contrasts to the open interest action on August 8 when it declined 2,099 contracts. As this report is being written, December wheat is trading 25.50 cents lower.

Crude oil:

September crude oil gained 1 cent on volume of 558,206 contracts. Volume shrank by approximately 57,000 contracts from August 8 when open interest increased by 480 contracts and crude closed 32 cents lower. On August 9, open interest increased by 7,801 contracts, which in relation to volume is approximately 50% less than average.

Gasoline:

September gasoline gained 2.04 cents on heavy volume of 167,467 contracts. Volume was the highest since July 25 when gasoline traded 180,498 contracts while open interest declined 4,963 and gasoline closed lower by 0.96 cents. Volume increased from August 8 when 140,521 contracts were traded and gasoline made a new high for the move at $3.0225 and reversed to close 1.09 cents lower, while open interest increased by 1,094 contracts. Additionally, on August 8, the daily range was 5.01 cents which is down from its 21 day average true range of 6.48 cents. Open interest increased by 4,500 contracts which in relation to volume is average. Conceivably, the action on August 8 and 9 may signal a top or temporary top.

Heating oil:

September heating oil gained 2.91 cents on volume of 160,090 contracts. Open interest increased by 2,390 contracts, which in relation to volume is approximately 50% less than average. On August 6 heating oil generated a short-term buy signal and on August 8 generated  an intermediate term buy signal. 

Copper:

September copper closed 0.35 cents higher on fairly heavy volume of 72,832 contracts. Volume was the highest since August 7 when 75,706 contracts were traded and copper advanced 5.15 cents while open interest declined 3,787 contracts. Although copper was essentially unchanged, open interest increased by a massive 5,093 contracts, which in relation to volume is a huge number and represents a 240% increase over the average. During the past three days, copper has tested the $3.44-$3.45 area, and as this report is being written on August 10, September copper is trading 3.10 cents lower.

Gold:

December gold closed $4.20 higher on extremely low volume of 74,724 contracts. Most likely, this was one of the lowest volume days of 2012. However, open interest increased on the price advanced by 1,196 contracts, which in relation to volume is approximately 45% lower than average. In yesterday’s report, we suggested that investors take a look at writing puts (short puts) in the out of the money area of 1530-1550 level for the month of October. As this report is being written on August 10, gold is trading $3.30 higher on the day.

Silver:

September silver gained 2.2 cents on light volume of 33,488 contracts. Open interest increased by 1,129 contracts, which in relation to volume is approximately 20% above average. The market continues to trade in a lackluster fashion.

Euro: 

The September Euro lost 60 points on volume of 189,958 contracts. Open interest increased by 1,586 contracts. There is no reason to be involved with the Euro at this juncture.

S&P 500 E mini:

The September S&P 500 E mini closed 2.25 points higher on very low volume of 1,179,968 contracts. Volume declined approximately 43,000 contracts from August 8 when the S&P 500 E mini gained 1.25 points and open interest increased by 6,276 contracts. Open interest increased by 12,069 contracts, which was nearly twice the increase of August 8. In relation to volume, the open interest increase was 65% less than average. The S&P 500 E mini has been trading with a lack of participation and a low level of commitment as exemplified by the modest increases of open interest. Open Interest Analyst prefers being long Apple Computer instead of the E mini. With volatility low, investors should consider buying puts on the E mini to protect profits on existing positions.