For Bloomberg access:{OIAR<GO>}

Soybeans:

January soybeans advanced 10.25 cents on volume of 237,576 contracts. Total open interest increased by 7,133 contracts, which relative to volume is approximately 20% above average. The January contract accounted for loss of 6,065 of open interest. As this report is being compiled on December 12, January soybeans are trading 3.75 cents lower after making a daily high of 10.53 1/4, which is above yesterday’s high of 10.48. On December 9, January and March soybeans generated a short-term buy signal, but still remains on an intermediate term sell signal.In order for an intermediate term buy signal to be generated, the low the day must be above OIA’s key pivot point for December 12 of 10.45 1/2.

Soybean meal:

January soybean meal advanced $2.40 on volume of 91,796 contracts. Total open interest increased by 3,735 contracts, which relative to volume is approximately 55% above average meaning new longs were aggressively entering the market in large numbers and driving prices fractionally higher. The December contract accounted for loss of 455 of open interest, January 2015 -6,253. As this report is being compiled on December 12, January soybean meal is trading 3.80 lower and has made a daily low at 364.30. January soybean meal remains on a short and intermediate term buy signal.

Corn:

March corn advanced 4.75 cents on volume of 248,485 contracts. Total open interest increased by a massive 10,083 contracts, which relative to volume is approximately 55% above average meaning new longs were aggressively entering the market in large numbers and driving prices to a new high for the move (4.01). The December contract accounted for loss of 3,844 of open interest, which makes the total open interest increase more impressive (bullish). As this report is being compiled on December 12, March corn is trading 6.25 cents higher and has made a new high for the move at 4.07 1/4.In order for the rally to continue, March corn must make a daily low above OIA’s key pivot point for December 12 of 4.03. The market has been exhibiting very positive open interest action relative to price declines and advances. March corn remains on a short and intermediate term buy signal.

Chicago wheat:

March Chicago wheat advanced 15.75 cents on volume of 102,809 contracts. Total open interest declined only 83 contracts. The December contract accounted for loss of 67 of open interest, May 2015-993, July 2015 -547. As this report is being compiled on December 12, March wheat is trading 13.50 cents higher and has made a new high for the move of 6.13 1/2, which takes out the previous high of 6.11 3/4 made on December 2.Additionally, March Chicago wheat has made a daily low of 5.93 1/2, which is above OIA’s key pivot point for December 12 of 5.93 1/4. This increases the likelihood that the rally will continue.

WTI crude oil:

January WTI crude oil lost 99 cents on heavy volume of 776,546 contracts. Total open interest increased by 21,667 contracts, which relative to volume is average. However, this is the largest increase of open interest on a price decline since November 28 when WTI lost $7.54 on volume of 883,726 contracts and total open interest increased by 34,285 contracts. Making the total open interest increase more bearish was the fact that the January contract lost 13,867 of open interest. As this report is being compiled on December 12, January WTI is trading $1.79 lower and has made a new contract low of 57.34. Stand aside.

Natural gas:

January natural gas lost 7.2 cents on volume of 379,593 contracts. Total open interest declined by 2,559 contracts, which relative to volume is approximately 65% below average. The January contract accounted for loss of 21,608 of open interest. As this report is being compiled on December 12, January natural gas is trading 12.5 cents higher on the day. January natural gas remains on a short and intermediate term sell signal. Stand aside.

Gold: On December 11 February gold generated a short-term buy signal, but remains on an intermediate term sell signal.

February gold lost $3.80 on volume of 150,603 contracts. Total open interest declined by 4,199 contracts, which relative to volume is ¬†average. As this report is being compiled on December 12, February gold is trading $1.70 lower and has made a daily low of 1214.80, which is below yesterday’s low of 1216.40. Despite the impressive performance of gold, the reality is the 20 day moving average remains below the 50 day, and we believe there is more backing and filling to do before gold can muster the strength to move significantly higher.

Platinum: On December 11, January and April platinum generated a short-term buy signal, but remains on an intermediate term sell signal.

January platinum declined by 40 cents on volume of 12,648 contracts. Total open interest increased by 529 contracts, which relative to volume is approximately 55% above average meaning a battle ensued between longs and shorts and shorts were able to move the market just fractionally lower. As this report is being compiled on December 12, January platinum is trading $10.30 lower.

Silver: On December 11, March silver generated a short-term buy signal, but remains on an intermediate term sell signal.

March silver lost 7.5 cents on volume of 37,464 contracts. Total open interest declined by 484 contracts, which relative to volume is approximately 45% below average. As this report is being compiled on December 12, March silver is trading 1.7 cents lower on the day.

Cocoa:

March Cocoa lost $79.00 on volume of 22,693 contracts. Total open interest declined by a massive 2,873 contracts, which relative to volume is approximately 425% above average meaning liquidation was off the charts heavy. The March contract accounted for loss of 2,991 of open interest, May 2015-284. Considering the massive build up in open interest over the past several sessions, it is perfectly healthy and normal to expect a significant decline of it when cocoa undergoes a major decline in price.In order for the short term buy signal to be reversed, (generated on December 8), the high of the day must be below OIA’s key pivot point for December 12 of 2832. We think this is unlikely, and that prices at current levels represent solid value. Additionally, the term structure of the cocoa market is inverted which bodes well for higher prices.

Coffee:

March coffee lost 2.15 cents on volume of 22,621 contracts. Total open interest increased by 698 contracts, which relative to volume is approximately 20% above average meaning that new short sellers were entering the market at an above average pace and driving prices lower. As this report is being compiled on December 12, March coffee is trading 2.35 cents lower on the day. There is some speculation that much of the liquidation is due to index funds rebalancing their portfolios. After this is completed, we expect coffee prices to begin a new ascent.