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July soybeans gained 13 1/2 cents on light volume of 160,326 contracts. Total open interest declined by 1,713 contracts and open interest in the July contract declined by 4,152 contracts on volume of 84,911 contracts. Total volume was the lowest since May 21 when soybeans traded 137,035 contracts which reinforces the negative market action. Another concern is that the back months rose by a significantly greater amount than the front months. For example, new crop November beans rose 18 1/2 cents, and January beans rose 19 3/4 cents. Although supplies are tight, the market is not ready to move higher just yet. Stand aside.
July soybean meal gained $5.00 on very light volume of 59,216 contracts. Total open interest increased by 543 contracts, but open interest in the July contract declined by 2,543 contracts on volume of 35,792 contracts. Soybean meal has the same story as soybeans and the low volume combined with the decline of open interest, especially in the July contract indicates there is not a great deal of enthusiasm by market participants. Although the back months for soybeans outperformed the front months, the July meal contract rose as much as the back months. Stand aside.
July wheat lost 2 1/2 cents on volume of 112,598 contracts. Open interest increased by 3,427 contracts. Volume was the lightest since May 15 when 92,202 contracts were traded. It appears that global supplies may not be as plentiful as the trade was expecting. As I have pointed out before, speculators should not enter long or short positions. Stand aside.
July corn lost 25 cents on volume of 327,148 contracts. Total open interest declined by 2,766 contracts and open interest in the July contract declined by 1,183 on volume of 184,176 contracts. The market made a new low for the move at $5.76 3/4, which was the lowest price since December 6, 2011. In relation to volume, the open interest declines for July and the total number of contracts was minuscule. This may indicate that we are getting close to temporary bottom. Also, open interest has not been increasing on declines, which would add a further bearish dynamic to corn. At this juncture, there is no reason to be involved in corn from either the long or short side. Stand aside.
July crude oil gained 70 cents on light volume of 392,146 contracts. Open interest declined by 4,997 contracts. The market looks like it wants to go lower. Stand aside.
July gasoline closed 1.78 cents higher on fairly heavy volume of 173,545 contracts. Open interest decreased on the advance by 2,454 contracts. Since May 17, open interest has declined by 17,528 contracts. On May 17 July gasoline closed at $2.8174 and closed at $2.8193 on May 24. In other words, there wasn’t much of a change in the closing price over a span of six sessions, yet hefty liquidation was in evidence. This may be indicative of a possible bottoming process. The next level of support would be in the $2.72-$2.73 area, which provided support from January 4, 2012 through January 17, 2012. On May 7, 2012, gasoline generated in intermediate term sell signal. Stand aside.
July copper closed 3.25 cents higher on volume of 72,100 contracts. Open interest declined by 1,936 contracts. Wait for a 15-20 cent rally before implementing bearish positions. Stand aside.
June gold closed $9.10 higher on heavy volume of 247,379 contracts. Open interest declined by 3,198 contracts. Before embarking upon a program to accumulate gold at lower prices, please consult your investment advisor or broker.
July silver closed 63.8 cents higher on volume of 51,934 contracts. Open interest declined by 25 contracts. Stand aside.
The June Euro lost 48 points on heavy volume of 348,508 contracts. Open interest increased by 2,828 contracts. In relation to volume, the open interest increase was minuscule. This may indicate there is a reluctance on the part of market participants to enter into new positions. The market made a new low for the move at 1.2516, which was the lowest price on the Euro continuation chart since July 1, 2010 when the market reached a low of 1.2324. This weekend, is a Memorial Day holiday, and therefore the markets will be closed on Monday May 28. It is possible there could be a surprise announcement coming out of the European Central Bank that could dramatically affect the direction of the Euro. Stand aside.
S&P 500 E mini:
The June S&P 500 E mini closed 6.75 points higher on volume of 2,182,150 contracts. Open interest declined by a minuscule 5,719 contracts. Maintain long put protection.