Soybeans: On August 1, November 2017 soybeans generated a short term sell signal, but remains on an intermediate term buy signal.
November soybeans lost 35.50 cents on volume of 1,863 contracts. Surprisingly, total open interest increased only 2,279, and relative to volume is approximately 60% below average. The August contract accounted for a loss of 1,749 of open interest. As this report is being on August 2, the November contract is trading fractionally higher and has not taken out yesterday’s low move of 9.69 3/4. Stand aside.
Corn: September and December 2017 corn will generate intermediate term sell signals on August 2 after generating short term sell signals on July 26.
September corn lost 8.25 cents on volume of 345,979 contracts. Total open interest increased by 19,225, which relative to volume is approximately 120% above average. The September contract lost 2,666 of open interest. As this report is being compiled on August 2, the September contract is trading fractionally above yesterday’s close. Stand aside.
WTI Crude Oil:
September WTI crude oil lost $1.01 on volume of 1,694,138 contracts. Total open interest declined by 7,998 contracts, which relative to volume is approximately 75% below average. The September contract accounted for a loss of 24,800. The total open interest decline was impressive considering the magnitude of the move. The September contract made a low of 48.37, which is the lowest print since 48.25 made on July 27. On July 3, OIA announced that September WTI crude oil generated a short term buy signal and an intermediate term buy signal on July 26. Do NOT short crude oil.
The Energy Information administration announced that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 1.5 million barrels from the previous week. At 481.9 million barrels, U.S. crude oil inventories are in the upper half of the average range for this time of year. Total motor gasoline inventories decreased by 2.5 million barrels last week, but are in the upper half of the average range. Both finished gasoline inventories and blending components inventories decreased last week. Distillate fuel inventories decreased by 0.2 million barrels last week but are in the upper half of the average range for this time of year. Propane/propylene inventories increased by 1.7 million barrels last week but are in the lower half of the average range. Total commercial petroleum inventories increased by 1.1 million barrels last week.