Soybeans: On August 22 September soybeans generated an intermediate term buy signal, which confirms the short-term buy signal generated on August 19.
September soybeans lost 11 cents while the November contract lost 17.25 on volume of 202,546 contracts. Total open interest increased by 9,078 contracts, which relative to volume is approximately 75% above average, meaning that new longs and shorts were aggressively entering the market, but shorts were in control. The September contract lost 297 of open interest. On August 19, November soybeans generated a short and intermediate term buy signal and on the same day September beans generated a short-term buy signal. As this report is being compiled on August 23, September beans are trading 41.25 cents higher while the November contract is trading+ 39.00. Since generating a short and intermediate term buy signal in the November contract and a short-term buy signal in the September contract, the market had one setback, which occurred on August 20 when November and September each lost 12.75 cents. From a risk point of view, we are hesitant to recommend bullish positions at current levels because we think a setback is inevitable.