OIA will provide this week's export sales in tomorrow's report.
July soybeans advanced 3.00 cents on volume of 147,182 contracts. Volume was the heaviest since May 9 when July soybeans advanced 17.50 cents on volume of 172,535 contracts and total open interest increased by 773 contracts. On May 14, total open interest increased by a hefty 5,012 contracts, which relative to volume is approximately 40% above average meaning that new longs were aggressively entering the market and driving prices higher. July soybeans made a low of $14.67 in the early going and recovered nicely to close fractionally higher.
As this report is being compiled on May 15, July soybeans are trading 18.25 cents lower and have made a daily low of 14.62 1/2, which is below OIA's new key pivot point of $14.83 1/2. In order for July soybeans to resume its uptrend, the low of the day must be above the pivot point.The 20 day moving average for the July contract is $14.81. As stated in the excerpt from the May 11 report, soybeans have been unable to make a daily low above OIA's key pivot point and as a consequence have been trading in a sideways pattern. As a result, July soybeans remain on a short-term sell signal and an intermediate term buy signal.We have no recommendation.