On May 9, the USDA will release its world agriculture supply and demand report (WASDE).
July soybeans gained 9.75 cents on light volume of 132,146 contracts. Volume was the lowest since April 30 when 129,206 contracts were traded and July soybeans lost 4.50 cents while total open interest declined by 5,219 contracts. On May 2, total open interest declined by a massive 7,491 contracts, which relative to volume is approximately 120% above average meaning that liquidation was very heavy on the price advance. This is bearish open interest action relative to the price advance. The May contract lost 1,937 of open interest and July -5733. As this report is being compiled on May 5, July soybeans are trading 3.50 lower and have made a daily low of 14.61 which is 2.75 cents above the low made on May 2 of 14.57 1/4. For July soybeans to generate a short-term sell signal, the high for the day must be below 14.58 1/2. We think the path of least resistance is down, at least at this juncture, and advise against being long at current prices. Soybeans remain on a short and intermediate term buy signal.