OIA will provide an analysis on the USDA’s report released on June 30.
June 30 is 1st notice day for all July grain contracts.
August soybeans lost 3.75 and the November contract lost 16.25 cents on total volume of 200,650 contracts. Volume was the highest since June 17 when soybeans lost 23.50 cents on volume of 212,406 contracts and total open interest declined by 2,668 contracts. On June 27, total open interest declined by 9,344 contracts, which relative to volume is approximately 75% above average meaning that liquidation was very heavy on the modest decline in old crop and a larger decline in new crop soybeans. The July contract accounted for loss of 15,052 of open interest. As this report is being compiled on June 30, after the release of the USDA report, August soybeans are trading 37.00 cents lower while the November contract – 39.75. The August contract has made a low of 13.14 1/4 and the November contract, 11.75 3/4. More than likely, August and November soybeans will generate an intermediate term sell signal tomorrow. We have been advising clients to stand aside in all grains until after the report, and the downtrend continues across the board. Stand aside.