Soybeans: On August 19, November soybeans generated a short and intermediate term buy signal. Also, on August 19, September soybeans generated a short-term buy signal, but not an intermediate term buy signal.
September soybeans advanced 38.75 cents and the November contract gained 44 cents on volume of 250,845 contracts. Volume was the highest since May 23 when 307,139 contracts were traded and the September contract closed at $12.99 1/2. On August 19, total open interest increased by a massive 12,192 contracts, which relative to volume is approximately 75% above average meaning that new buyers were entering the market aggressively and pushing prices significantly higher. The September contract lost 2,751 of open interest, which makes the total open interest increase much more impressive. As this report is being compiled on August 20, both September and November soybeans are trading 8.25 cents lower, and we want to see another day or two of pullbacks, before bullish positions should be considered.