WTI Crude Oil: On July 26, September and October 2017 WTI crude oil generated an intermediate term buy signal after generating a short term buy signal on July 3.
September WTI crude oil gained 86 cents on volume of 1,537,338 contracts. Total open interest increased by 33,815 contracts, which relative to volume is approximately 20% below average. The September contract accounted for a loss at 1209 of open interest.
As this report is being compiled on July 27, the September contract is trading 29 cents above yesterday’s close and has made a new high for the move of $49.19, which takes out yesterday’s print of 48.87. Do not attempt to pick a top in this market.
September natural gas lost 1.7 cents on volume of 282,630 contracts. Total open interest declined by 839 contracts a minor number. The August contract lost 13,178 of open interest. As this report is being compiled on July 27, the September contract is trading 5.8 cents higher after the release of the EIA storage report, which showed that stocks are 9.2% below last year’s at this time.
We continue to be bullish on natural gas in the intermediate term, but want to see it generate a short term buy signal before making recommendation. The seasonal low may have already occurred, but it is likely the final low will be sometime in August. Stand aside for now.
The Energy Information Administration announced that working gas in storage was 2,990 Bcf as of Friday, July 21, 2017, according to EIA estimates. This represents a net increase of 17 Bcf from the previous week. Stocks were 302 Bcf less (-9.2%) than last year at this time and 111 Bcf above (+3.9%) the five-year average of 2,879 Bcf. At 2,990 Bcf, total working gas is within the five-year historical range.
Corn: On July 26, September and December 2017 corn generated short term sell signals, but remain on intermediate term buy signals.