Soybeans: July soybeans will generate a short-term buy signal on May 22, and has been on an intermediate term buy signal.
July soybeans gained 35.50 cents on light total volume of 154,518 contracts.Volume was below that of May 20 when 160,501 contracts were traded and July soybeans lost 15.50 cents while total open interest increased by 3,403 contracts.Additionally, volume was the lightest since May 16 when 101,386 contracts were traded and July soybeans lost 5.25 cents.On May 21, total open interest increased by 4,905 contracts, which relative to volume is approximately 30% above average. The July contract lost 735 of open interest, which makes the total open interest increased more impressive (bullish). However, considering the magnitude of the move, volume was disappointing as was the open interest increase. In our view, this conveys a certain amount of skepticism by market participants about soybeans continuing to move higher.