This report is being written after the release of the USDA WASDE Report.
July soybeans advanced 5.50 cents while the November contract gained 5.25 on total volume of 205,574 contracts.Volume was the heaviest since May 22 when soybeans advanced 13.50 cents on volume of 229,996 contracts and total open interest increased by 6,113. On June 10, total open interest increased by a massive 10,005 contracts, which relative to volume is approximately 100% above average meaning that aggressive new longs were entering the market and driving prices higher. July soybeans made a high of $14.75 1/4, and sold off to close fractionally higher. The July contract lost 9,246 of open interest and the November contract gained 14,351 of open interest.This explains the massive increase in total open interest. The old crop August contract gained only 1,608 of open interest. As this report is being compiled after the release of the USDA report, July soybeans are trading 1.50 cents lower while the November contract -4.50 and has made a low of 12.20. In yesterday's report, we said to wait until just before the release of the report before making a decision whether or not to liquidate the put position in the November contract recommended on June 2. Our recommendation is to hold the position.