WTI crude oil:
August WTI crude oil advanced 21 cents on light volume of 966,371 contracts. Volume was the weakest since June 19 when the August contract lost 54 cents on volume of 981,286 contracts and total open interest declined by 21,132. July and August 2017 contracts lost a total of 3,165 of open interest.
Yesterday, the August contract made a low of 42.26, which is above the low for the move of 42.05 made on June 21. As this report is being compiled on June 23, the August contract is trading nearly unchanged on the day and has not taken out yesterday’s low, nor has it taken out yesterday’s high of 43.30. Stand aside.
Live cattle: On June 22, August 2017 live cattle generated an intermediate term sell signal after generating a short term sell signal on June 14.
August live cattle lost 1.075 cents on surprisingly light volume of 43,783 contracts., Though volume was light, the total open interest declined was heavy losing 2,947, which relative to volume is approximately 160% above average. Apparently, based upon volume stats, many participants remained on the sidelines and as we pointed out in previous notes speculative longs showing losses will continue to exert selling pressure on the live cattle market. Stand aside.
Corn: July/September 2017 corn will generate intermediate term sell signals on June 23 after generating a short term sell signals June 21.
September corn lost 6.00 cents on volume of 441,504 contracts. Total open interest increased by a sizable 11,468 contracts, which relative to volume is average. The July contract accounted for a loss of 14,075 of open interest, which means there were sufficient open interest increases in the forward months to offset the decline in July and increase total open interest.
As this report is being compiled June 23, the September contract is trading lower again, down 4.00 cents-1.08% and has made a a new low for the move of 3.66 1/4, which takes out the previous low print going back to December 23, 2016 when the September contract made a low of 3.66 1/2.
From the June 16 note on corn:
“It appears that corn is headed toward a short term sell signal and this will occur if the daily high is below OIA’s key pivot point for June 19 of 3.76 5/8. We recommend a stand aside posture in corn and if it generates a short term sell signal, we advise against shorting this market due to the potential for a weather scare during the growing season.”
From the June 15 note on corn:
“In yesterday’s research note on corn, we suggested the exit for bullish positions could either be the low made on June 12 or penetration of the 20 day moving average 3.74 7/8. As this report is being compiled June 15, both of these conditions been fulfilled and therefore we recommend moving to the sidelines for now. The rally will resume again if the July contract makes a daily low of above our pivot of 3.78 1/4. The last time July was able to accomplish this was on June 9 when it made a low of 3.80 3/4.”
From the June 13 note on corn:
“We are troubled by substantial drop off in volume on yesterday’s advance and the lack of a total open interest increase. Also of concern the dollar index is trading sharply lower on June 14, but this is not giving corn a bid. Undoubtedly, somewhat weaker ethanol prices are weighing on corn and currently the July contract is down 1.15%, but is trading above its 20 day moving average of 1.533.”