September soybeans gained 11.75 cents on volume of 159,336 contracts. Total open interest increased by a massive 11,080 contracts, which relative to volume is approximately 360% above average, meaning that longs and shorts had a major battle for dominance, and the longs were clearly the winners. We suspect players on the buy side were commercial interests. The August and September contracts lost 739 of open interest, which makes the total open interest increase more impressive. The longs continue to be on the right side of the trade because as this report is being compiled on August 15, September soybeans are trading 16.50 cents higher and have made a new high for the move at $12.94. Based upon open interest action of the last 3 days, it is apparent that speculative shorts are digging in and refusing to cover positions even though September soybeans have rallied over a dollar from the low of $11.86 made on August 5. The USDA reported cancellations of 10,500 tons for the 2012-2013 season and a massive sale of 1893.4 thousand tons for the 2013-2014 season. It is highly likely that November soybeans will generate a short-term buy signal on August 15. November soybeans show stronger relative performance to the September contract. Do not short soybeans.