September soybeans gained 38 cents on heavier volume of 230,198 contracts. Volume was the highest since July 25 when 228,171 contracts were traded and September soybeans closed at $12.66 3/4. On August 12, open interest declined by 1,215 contracts, which is approximately 75% below average. The August and September contracts lost a total of 1,253 of open interest. Although the market rallied sharply, open interest action was indicative of shorts getting blown out. The crop report was very supportive for soybeans and it took the market by surprise that ending stocks for the 2013-2014 season were reduced to 220 million bushels, which was down from 295 mb in the July report. Planted acreage was reduced from 77.7 million acres to 77.2 million acres. Also, the average yield was cut to 42.6 bushels per acre from 45.5 bpa in the July report. As of the latest COT report, managed money is short at the highest level in well over a year. The market is likely to experience sharp rallies because the crucial growing season is ahead. Soybeans remain on a short and intermediate term sell signal.