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The USDA supply demand report will be released on Tuesday, June 12. Do not enter new positions prior to the report.
Soybeans:
July soybeans lost 1.75 cents on volume of 269,321 contracts. Volume was the highest since May 2 when 289,403 contracts were traded. Total open interest declined by 200 contracts and open interest in the July contract declined by 11,449 contracts on volume of 118,117. There was enough buying in the back months to offset the large open interest decline in the July contract. The market reached a high of $14.39, which was the highest price for soybeans since May 17 when the market hit $14.49 3/4. As I write this on June 11, soybeans have not generated a short-term buy signal, but is on an intermediate term buy signal. Stand aside.
Soybean meal:
July soybean meal gained $4.30 on volume of 74,064 contracts. Total open interest increased by 2,602 contracts and open interest in the July contract declined by 2,009 contracts indicating there was significant buying in the back months to offset the open interest decline in the July contract. On June 8, July soybean meal generated a short-term buy signal, which reversed the short term sell signal triggered on May 23. The market’s low on Friday was $421.70, which was above the pivot point of $421.40, which triggered a short-term buy signal. It was remarkable that the market had such a buoyancy in the face of sharply declining equity markets and a sharply higher dollar. In the June 10 Weekend Wrap, I wrote extensively about soybean meal and I suggest that readers review the material. Consult your investment advisor or broker regarding the entry and timing of bullish positions.
Corn:
July corn closed 4 cents higher on relatively heavy volume of 357,362 contracts. Total open interest declined by 6,720 contracts and open interest in the July contract declined by 23,679 on volume of 155,163. Stand aside.
Wheat:
July wheat closed 11.50 cents lower on fairly heavy volume of 166,143 contracts. Total open interest declined by 8,911 contracts. As I pointed out in the June 10 Weekend Wrap, wheat is trading in its value zone around the $6.30 level, and the 50, 150, 200 day moving averages are clustered in the zone of $6.30-$6.39. Stand aside.
Crude oil:
July crude oil lost 72 cents on heavy volume of 687,726 contracts. Total open interest declined by 6,834 contracts. For the past three trading sessions, volume has been above 640,000 contracts. This is above the average daily volume for May of 563,716 contracts and also above the year to date average daily volume of 605,425 contracts. From a market action point of view, crude oil has been trading in a relatively narrow range during this three-day session and open interest has been fairly static. Stand aside.
Gasoline:
July gasoline closed unchanged on lackluster volume of 138,213 contracts. Total open interest declined by 415 contracts. Relative to its 200 day moving average of $2.87 the market is massively oversold and is due for a rally, especially since the summer driving season is upon us. Stand aside.
Copper:
July copper closed sharply lower losing 8.55 cents on heavy volume of 101,350 contracts. Total open interest declined by 4,627 contracts. The market has not been able to rally to the $3.60 level, which would be the preferred place to implement bearish positions. Stand aside.
Gold:
August gold closed $3.40 higher on volume of 166,336 contracts. Total open interest declined by 2,605 contracts. On June 6, August gold generated a short-term buy signal, but remains on an intermediate term sell signal. Consult your investment advisor, or broker before embarking upon a plan to acquire gold.
Silver:
July silver lost 5.8 cents on volume of 50,924 contracts. Open interest increased by 170 contracts. Please review the June 10 Weekend Wrap for an in-depth analysis on silver and why I believe silver prices have seen their lows. Stand aside.
Euro:
The June Euro closed 96 points lower on heavy volume of 345,825 contracts. Open interest increased by 1,707 contracts. The direction of the Euro will be determined by the news out of Europe. There is no reason to be involved in the Euro at this juncture. Stand aside.
S&P 500 E mini:
The June S&P 500 E mini closed 12.00 points higher on extremely heavy volume of 3,277,354 contracts. Open interest increased by 24,633 contracts. Maintain long put protection.
