May 30 report
July soybeans lost 6 cents on light volume of 122,277 contracts. Open interest declined by 1,924 contracts, which relative to volume is approximately 35% less than average. The July contract accounted for loss of 2,711 of open interest. As this report is being compiled on May 31, soybeans are trading 19.75 cents higher and have made a high of $15.23, which is the highest price since May 28 when beans made a high of 15.28 1/2. The market is in an un-even uptrend, and July soybeans are in the last month of trading. In our view, this bodes well for higher prices. On a seasonal basis, soybeans have a tendency to top out in May, June and July. Our major concern is the parabolic top of $15.46 3/4 made on May 23. If the market approaches this level again, there is likely to be a pullback, and conceivably a top. Soybeans remain on a short and intermediate term buy signal.