1. Soft Commodities Outlook
  2. Softs Technical Charts

NY 2nd Month Sugar Futures

NY Sugar 09112022

NY sugar futures jumped higher yesterday as bullish appetite trading saw prices close above 100 DMA at 18.06. The stochastics are seen diverging on the upside, with the %K/%D in the overbought, and the MACD diff is positive and diverging, suggesting growing buying pressures. A complete break of the 100 DMA at 17.97 could trigger gains through 18.17, with the tertiary level at 18.50. On the downside, a break below 17.62 could set the scene for bearish momentum towards the 40 DMA at 17.55. The long candle body with a long lower wick points to increased appetite on the upside, but resistance at 100 DMA needs to be broken completely first to confirm the conviction of the momentum.

Tables 1 (234)

Ldn 2nd Month Sugar Futures

Ldn Sugar 09112022

Ldn sugar futures strengthened yesterday as protracted buying pressure triggered a close on the front foot at 517.40. The RSI is rising, while %K/%D is diverging in the overbought. Likewise, the MACD diff just is positive and diverging. On the upside, finding support above the 100 DMA at 515.78 could trigger gains through 520, September highs, towards 525. On the downside, a break below the 40 DMA at 503.98 level could trigger losses back towards the 10 DMA at 500.54. That level has been supporting futures prices in recent days, and a break below it would signal strong selling pressure. Longer lower wick signals that the buying pressure is growing, and the bullish outlook is on the horizon.

Tables 2 (233)

NY 2nd Month Coffee Futures

NY Coffee 0911222

NY coffee futures weakened yesterday after breaking support of 165.95. The market closed at 164.15. The stochastics continue to soften, with %K/%D converging on the downside once again while oversold, and the MACD diff is negative but struggles to suggest a conviction in the market. A complete break below the 165 level would bring into play the 160, which could set the scene for support at 150 in the longer term. On the upside, futures need to gain back above 10 DMA at 171.34 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 180; this could strengthen the trend in the long run on the upside. Longer lower wick suggests that futures tested and rejected the momentum below 162, which could point to prices finding a bottom in the near term.

Tables 3 (233)

Ldn 2nd Month Coffee Futures

Ldn Coffee 09112022

Ldn coffee futures edged lower yesterday, but support at 1827 caused the market to close at 1831. The stochastics are falling, with %K/%D converging on the downside in the oversold territory, but the MACD diff is negative and converging, painting a mixed picture. To suggest the outlook for lower prices, futures need to close back below 1827 and then target 1800. Alternatively, a break above the resistance at 10 DMA at 1857 could set the scene for 1872 and then 1900. The long candle body with short upper and lower wicks points to a strong appetite for lower prices today, and we expect the futures to edge lower in the near term.

Tables 4 (234)

NY 2nd Month Cocoa Futures

NY Cocoa 0911222

NY cocoa futures gained ground yesterday as buying pressure triggered a close on the front foot at 2524. The stochastics are rising with the %K/%D diverging in the overbought area, as the MACD diff is positive and diverging on the upside. This suggests we could see higher prices in the near term towards 2600, but the market needs to take out immediate resistance of 2543. On the downside, the candle found support at 2500, and if the prices break through this level, we could see prices retreat back through the 100 DMA at 2470 before 2420. The three white soldier formation is a bullish signal, but futures need to take out the near-term resistance in order to confirm the outlook on the upside.

Tables 5 (232)

Ldn 2nd Month Cocoa Futures

Ldn Cocoa 09112022

Ldn cocoa edged higher yesterday as intraday trading caused futures to test appetite for prices above 2000, the market closed at 2016. Stochastics are rising, and %K/%D is seen diverging on the upside in the overbought, confirming positive momentum. The MACD diff is positive and diverging. To maintain positive momentum, prices need to close above 2030 and then target trend resistance at 2050. On the downside, the rejection of prices above 2000 could trigger losses back to the 1980 level before targeting 1900. Buying pressure remains weak, and the doji candle confirms market uncertainty. The break below the support of 2000 could confirm the outlook of weaker prices.

Tables 6 (233)



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