Soybeans:

January soybeans lost 17 cents on very light volume of 123,024 contracts. Volume was the lowest since November 6 when 118,084 contracts were traded and open interest declined by 6,307, while January soybeans advanced 12.25. On November 15, open interest increased by a hefty 4,794 contracts, which in relation to volume is approximately 60% above average meaning that longs and shorts were heavily implementing new positions, and that shorts were in control.

The export sales report was released by the USDA, and it showed net sales of 585,200 metric tons, which was above expectations. The net sales number includes a cancellation of 346,200 metric tons. It has been reported on November 16 that China canceled an additional 600,000 metric tons of soybeans for delivery in December and January. As this report is being compiled on November 16, January soybeans are trading 16.25 cents lower, and have made a new low for the move at $13.72 1/4. Stand aside.

Soybean meal:

December soybean meal lost $5.50 on light volume of 55,910 contracts. Open interest declined by 1,216 contracts, which in relation to volume is approximately 5% below average. Export sales for soybean meal was terrific at 234,600 tons for 2012-13. This is the highest sales number in 6 weeks. Although we don’t report on soybean oil because the market has been sluggish and is the laggard behind soybeans and soybean meal, sales in the current marketing season are dramatically outpacing sales at this time last year. China has been the big buyer with Mexico a close second. As this report is being compiled on November 16, December soybean meal is trading $5.10 lower and has made a new low for the move at 420.90. Stand aside.

Corn:

December corn lost 4.50 cents on light volume of 220,041 contracts. Open interest declined by 2,382 contracts, which in relation to volume is approximately 50% below average. Export sales for corn totaled 103,900 metric tons for 2012-2013 and 208,200 metric tons for 2013-2014. Sales continue to run significantly below the pace of the last several years, and are the lowest in decades.  The EPA announced that it is continuing the ethanol mandate. Stand aside.

Wheat:

December wheat lost 3.25 cents on volume of 117,832 contracts. Open interest increased by 1,195 contracts, which in relation to volume is approximately 50% below average. Export sales totaled 314,600 tons, which is behind projected sales by the USDA of 548,000 metric tons per week. As this report is being compiled, December wheat is trading 9.25 cents lower and has made a new low for the move at $8.29 1/2. This is a breakout on the downside of its nearly 4 month sideways pattern. The low made on November 16 was last seen on July 11 when December wheat reached $8.16 1/4, and closed at 8.38 8/4. Until export sales pick up, wheat will drift sideways to lower. Stand aside.

Crude oil:

January crude oil lost 45 cents on volume of 640,713 contracts. Open interest declined by a whopping 29,298 contracts, which in relation to volume is approximately 75% above average, meaning that liquidation was heavy. During the past 5 days, open interest has declined by 96,966 contracts, while crude oil has advanced 78 cents. This is bearish. The market has made feeble attempts to rally based upon Israel attacking Gaza, but has not gotten very far. Stand aside.

Heating oil:

December heating oil lost 1.47 cents on light volume of 104,187 contracts. Open interest increased on the decline by 2,664 contracts, which in relation to volume is average. Stand aside.

Natural gas:

December natural gas lost 5.7 cents on volume of 373,513 contracts. Open interest declined by 1,173 contracts, which in relation to volume is approximately 75% less than average, meaning that liquidation was very light. Natural gas made a fractional new high above the November 14 high, but lost ground to close at $3.703. The market is in a bullish set up and should find support at $3.65 and $3.62. From a risk-reward standpoint, there is a bit too much risk on the downside at current levels. As this report is being compiled on November 16 December natural gas is trading at 3.785.

Copper:

December copper gained .0090 on volume of 52,831 contracts. Open interest declined by 510 contracts, which in relation to volume is approximately 50% below average. Stand aside.

Gold:

December gold lost $16.30 on fairly heavy volume of 215,088 contracts. Volume was the highest since November 7 when 306,101 contracts were traded and open interest increased by 3,239 contracts while December gold lost $1.00. On November 15, open interest increased on the decline by 1,182 contracts, which in relation to volume is approximately 75% less than average, meaning the increase was not significant. Continue to stand aside.

Silver:

December silver lost 20.6 cents on fairly heavy volume of 69,989 contracts. Volume was the highest since November 7 when 78,154 contracts were traded and December silver lost 37.3 cents, while open interest declined by 1,497 contracts. On November 15, open interest increased by 1,263 contracts, which in relation to volume is approximately 15% less than average. Continue to stand aside in silver.

Euro:

The December euro gained 27 points on volume of 243,994 contracts. Open interest declined by 5,009 contracts, which in relation to volume is approximately 5% less than average. It is likely the euro will encounter formidable resistance between 1.2822 and 1.2860. The euro has not generated an intermediate term sell signal, which would confirm the short term sell signal given on November 5. Stand aside.

S&P 500 E mini:

The S&P 500 E mini lost 1.75 points on volume of 2,423,960 contracts. Open interest declined by 3,318 contracts, which means that liquidation was not heavy, despite the E mini moving to a new low for the move at 1345.25. As this report is being compiled on November 16, the E mini has made a new low for the move at 1340.25, but has rallied to the 1355 area. This may be the first sign that a short-term rally is in the offing. Maintain long puts, but be aware that major indices are significantly overdue for a good-sized bounce.