Soybeans: Liquidate long put positions in the November 2014 soybean contract.
July soybeans advanced 10.75 and the November contract gained 1.00 cent on total volume of 157,802 contracts. Total open interest declined by 401 contracts, which relative to volume is approximately 85% below average. The July contract accounted for loss of 6,456 of open interest and the August 2014 through August 2015 contracts all gained open interest. As this report is being compiled on June 19, July soybeans are trading 10.50 higher and the November contract is trading 12.00 cents above yesterday's close. July and November soybeans remain on a short-term sell signal, and an intermediate term buy signal.
We have been looking at the November chart, and it looks as if the market has found a temporary base. For example, the November contract made a low for the move on June 5 of $12.01 1/4 and attempted to test that low on June 17 at 12.02 1/2. Although, we think November soybeans are ultimately headed lower, a rally in old crop soybeans due to its oversold condition could likely take the November contract higher as well. On June 2, we recommended long put positions in the November contract, and the position likely has a small gain/loss, or break even. OIA recommends liquidating the position and we will look for another spot to enter bearish positions at a more opportune time. After liquidating stand aside.