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July soybeans closed 4 3/4 cents higher on light volume of 199,944 contracts. Open interest declined by a mere 55 contracts. However, in the July contract, open interest declined by 7,232 contracts on volume of 117,070 contracts, which is a hefty decline of open interest in relation to volume. The market is massively overbought and could easily correct down to the $14.00 level. Stand aside.
July corn closed 5 3/4 cents higher on volume of 290,317 contracts. Total open interest declined by 1,994 contracts. Open interest declined in the front months (May, July, September) while it increased from December 2012 into the contracts of 2013. Specifically, in the July contract, open interest declined by 3858 contracts on volume of 168,582 contracts. While this decline is about average in scale, it does remind us that liquidation continues in the July contract. On Friday, July corn went to a premium over July wheat. Stand aside.
June crude oil closed $4.05 lower on very heavy volume of 884,050 contracts. Open interest increased by 5,102 contracts, which is minuscule in relation to the volume. The market has seen a huge build in open interest during the past month. And yet during the price decline of the past two sessions, the market has experienced two days of open interest increases, rather than declines, which would indicate liquidation. For example, during the sessions of May 3 and 4, open interest increased by a total of 13,511 contracts and price declined by $6.73. Stand aside.
June gasoline closed 7.42 cents lower on volume of 154,867 contracts. Open interest increased by 1,558 contracts. During the past three trading days, gasoline has lost 12.13 cents and open interest has increased by a total of 9,790 contracts. June gasoline made a low of $2.9407, which was the lowest price since January 31, 2012, but volume was relatively low. As I pointed out in the May 6 Weekend Wrap, there are a huge number of large spec longs in the gasoline market, and many are sitting on fairly large losses. If the market continues its trajectory lower, speculators may embark upon panic selling. Please review May 6 Weekend Wrap. Stand aside.
July copper lost 1.50 cents on volume of 58,155 contracts. Open interest increased by 2,813 contracts. The market remains on a short-term sell signal and an intermediate term buy signal. Please review the May 6 Weekend Wrap for a further discussion on copper. Stand aside.
June gold closed $10.40 higher on volume of 158,331 contracts. Open interest declined by 1,203 contracts. The market remains on a short and intermediate term sell signal. Please seek the advice of your investment advisor or broker regarding a plan to accumulate gold at lower prices for the long term.
July silver closed 42 cents higher on low volume of 46,597 contracts. Open interest increased by 240 contracts. Stand aside.
The June Euro lost 63 points on volume of 237,820 contracts. Open interest increased on the decline by 6,411 contracts. Stand aside.
S&P 500 E mini:
The June S&P 500 E mini lost 23.50 points on heavy volume of 2,078,236 contracts. Open interest increased on the decline by 33,284 contracts. Long put protection should already be in place.