1. Soft Commodities Outlook
  2. Softs Technical Charts

NY 2nd Month Sugar Futures

NY Sugar 30092022

NY sugar futures edged higher yesterday as moderate appetite saw prices break above the 10 DMA resistance. The market closed at 17.77. The RSI is rising, and %K/%D is diverging on the upside into the overbought. The MACD diff is positive and diverging, suggesting growing buying pressure. The indicators point to higher prices in the near term, and to confirm the rejection of the resistance, prices need to take out the 40 DMA at 17.94. A break above this level towards 18.17 would confirm the subsequent bearish momentum. Conversely, appetite for prices below the 17.62 level could trigger a test of 17.48. We have seen a slight appetite for higher prices in recent days, and to confirm the indicators, the futures need to take out the 40 DMA to confirm the outlook.

Tables 1 (217)

Ldn 2nd Month Sugar Futures

Ldn Sugar 30092022

Ldn sugar futures held their nerve yesterday as intraday trading saw futures test appetite at 495.80 once again. This level held firm, and the future closed at 493.30. The stochastics are rising, with %K/%D converging on the upside and now rising out of the oversold, and the MACD diff is negative and converging, signalling growing buying pressures. To confirm the outlook for higher prices, futures need to break above the resistance at 495.80, which could set the scene for futures to test 500. On the downside, the market needs to take out the support of 487.60 and then support at 480. The recent days’ trading showed that there is a lack of appetite for prices below 487.60, and the futures have been trading higher since. However, the 10 DMA resistance level is set to cap prices on the upside, and with the volumes diminishing, we expect the futures to remain at the current levels in the near term.

Tables 2 (216)

NY 2nd Month Coffee Futures

NY Coffee 3009222

Prices weakened yesterday as moderate selling pressure triggered a close at 216.85. The MACD diff is negative and converging. The stochastics, however, are once again showing signs of convergence on the downside. The RSI is also falling, but the inside day yesterday suggests a continuation of the recent trend in the current ranges. The futures have been oscillating around the 10 DMA level at 217.82, but support at 212.60 remains robust, and if this level holds, prices could break above 100 DMA at 220.81 and then 40 DMA at 221.69. Conversely, a fall below the recent support could trigger losses to 209.65. The indicators paint a mixed picture, and we expect the futures to remain trading sideways in the near term.

Tables 3 (216)

Ldn 2nd Month Coffee Futures

Ldn Coffee 30092022

Ldn coffee futures edged lower yesterday, but support at 2160 caused the market to close at 2175. The stochastics are falling, with %K/%D in the oversold territory, and the MACD diff is negative and diverging, suggesting lower prices in the near term. To suggest the outlook of lower prices, futures need to close below 2160 and then target 100 DMA at 2111 before 2100. However, a break above the 10 DMA at 2204 could set the scene for 2215 and then 2200. The 10 DMA has crossed below the 40 DMA level, a death cross, suggesting futures could see growing downside momentum in the near term. To confirm this, the support at 2160 has to be broken first.

Tables 4 (217)

NY 2nd Month Cocoa Futures

NY Cocoa 3009222

NY cocoa futures edged higher yesterday, testing resistance at 10 DMA and closing at 2314. The stochastics are rising, with %K/%D diverging on the upside, and the MACD diff is negative and converging, about to send a buy signal. The reaffirmation of support at 10 DMA at 2304 could set the scene for higher prices back to test the 40 DMA level at 2363. On the downside, futures need to break below the support of 2236 in order to end the recent sessions’ bull trend. Indeed, the 10, 40 and 100 DMAs are providing robust resistance levels. Three white soldiers' formation in the previous sessions confirms the outlook for higher prices, and a break above 10 DMA today highlights the appetite for higher prices. The market needs to gain footing above the 40 DMA in the immediate term to improve the outlook.

Tables 5 (215)

Ldn 2nd Month Cocoa Futures

Ldn Cocoa 30092022

Lnd cocoa futures edged above the previous day's closing price, but the bullish momentum was not strong enough, and futures closed lower on the day at 1901. The stochastics continue to rise yet seen converging, with %K/%D set to exit the overbought, and the MACD diff is positive and converging. The rejection of prices at 1930 has formed a candle with a narrow body but a long wick on the upside, suggesting a lack of appetite for higher prices. If prices were to break above 1930, this could trigger a test of 1950. To confirm the shooting start formation, futures need to take out 1884 and then robust support at 1850. A break below this level would confirm the outlook for lower prices.

Tables 6 (216)



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