E-mail comments and questions to: garry@openinterestanalyst.com

Soybeans:

July soybeans closed 10.25 cents higher on volume of 258,705 contracts. Total open interest increased by 9,312 contracts and open interest in the July contract declined by 5,364 contracts on volume of 114,267. The open interest increase was heavy in relation to the volume traded. There was enough buying in the back months to offset the open interest decline in the July contract. The market reached a high of $14.49 1/4, which nearly matched the high made on May 17 of $14.49 3/4. The July-November bull spread widened by another 4.50 cents, which is positive. The market did not generate a short-term buy signal, and as I write this on June 13, soybeans have not generated a short-term buy signal. Stand aside.

Soybean meal:

July soybean meal closed 5.00 higher on heavy volume of 89,989 contracts. Total open interest increased by 3,250 contracts and open interest in the July contract declined by 1,912 contracts on volume of 47,988 contracts. There was heavy buying buying in the back months to offset the decline of open interest in the July contract. The market made a new contract high at $439.90, which took out the old high of $437.60. Soybean meal generated a short-term buy signal on June 8, and as I write this on June 13, July soybean meal is $9.80 lower on the day. Readers should be consulting with their investment advisor or broker about an entry level for long positions and the timing of the entry.

Corn:

July corn lost 8 cents on healthy volume of 369,775 contracts. Volume was the highest since June 7 when 378,307 contracts were traded. Open interest declined by 5,006 contracts and this was the fourth day in a row that open interest declined, which brings the four session decline to 25,487 contracts. The market remains on a short and intermediate term sell signal. Stand aside.

Wheat:

July wheat lost 14.50 cents on heavy volume of 169,421 contracts. Total open interest increased by 4,712 contracts. On June 4, wheat generated in intermediate term sell signal. Stand aside.

Crude oil:

July crude oil gained 62 cents on very heavy volume of 842,057 contracts. Total open interest increased by 6,487 contracts. June 12 was the third time that crude oil made a low in the $81.00 area. The low on June 12 was $81.07, $81.11 on June 11, and $81.21 on June 4. On June 12, the 50 day moving average crossed below the 200 day moving average on the crude oil continuation chart. This is a bearish development, which is offset to some extent by the fact that the 206 week moving average for crude oil is $82.27. In other words, from a historical perspective crude oil is in its value zone. The recent lows in the $81.00 area represents support that may stem the tide downwards, but this will depend upon news coming out of China and Europe. The market remains on a short and intermediate term sell signal. Stand aside.

Gasoline:

July gasoline lost .64 cents on heavy volume of 184,013 contracts. Open interest increased by 5,889 contracts. The market continues to trade in its value zone of $2.65, which is the 104 week moving average. Gasoline is on a short and intermediate term sell signal. Stand aside.

Copper:

July copper lost .75 cents on lower than usual volume of 54,499 contracts. Open interest increased by 5,132 contracts. Stand aside.

Gold:

August gold closed $17.00 higher on healthy volume of 220,302 contracts. Open interest increased by 8,453 contracts, which was a significant increase in relation to the volume. On June 6, a short-term buy signal was generated, but gold remains on an intermediate term sell signal. For more information on gold, please review the Weekend Wrap of June 3. Readers should be consulting with their investment advisor or broker about accumulating gold for the longer-term.

Silver:

July silver closed 33.3 cents higher on volume of 61,836 contracts. The open interest action was disappointing and declined by 2,103 contracts. Although the market action in silver is unimpressive, especially when compared to gold, I continue to think that the market has seen the lows. Please review the Weekend Wrap of June 10 for more information on this.

Euro:

The June Euro gained 19 points on extremely heavy volume of 497,976 contracts. Volume on June 12 was the heaviest of the past several months. Open interest increased by 8,710 contracts, but that increase is rather modest in relation to the volume. As I write this, the Euro is 99 points higher, and as I have said before, there is no reason to be involved with this market. Stand aside.

S&P 500 E mini:

The September S&P 500 E mini gained 19.75 points on extremely heavy volume of 3,719,858 contracts. Open interest increased by 57,854 contracts. The situation in Europe continues to look dire and as a result, maintain long put protection.