NY 2nd Month Sugar Futures
NY sugar futures weakened once again yesterday as protracted selling pressure triggered a break of support at 19.00 before closing at 18.62. The stochastics are falling out of the overbought, and the MACD diff is positive and converging, suggesting we could see prices continue to weaken in the near term. The close is just off the lows, and the bearish indicators suggest we could see prices fall further and test 10 DMA at 18.54 today. The market was well supported above this level in recent sessions, and if prices can find support below 18.50, then this could prompt a test back of 100 DMA at 17.99 once again. The bulls need to close above 19.00 in order to gain a foothold in the market and pave the way for higher prices in the long run to 19.50. Selling pressure was strong yesterday, and this could trigger further losses in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures sold off yesterday as a lack of appetite for higher prices helped to confirm the rejection of bullish momentum, the market closed at 525.30. Stochastics are falling, with %K/%D diverging on the downside out of the overbought, MACD diff is positive and converging. The sell-off yesterday and a break of the key support level at 10 DMA at 530.11 suggest strong selling pressure, and a complete break below 520 support would confirm the outlook for lower prices. A break below this level could set the scene for a test of support at 512.90. On the upside, support around 520 would help reaffirm that the sell-off was temporary and would not lead to further downside pressures in the longer term. The futures would have to break back above 540 and 550 to confirm this. Longer lower wick points a lack of appetite for prices below 520.
NY 2nd Month Coffee Futures
NY coffee futures edged lower yesterday as intraday trading caused futures to close at 156.35. The stochastics are converging on the downside in the oversold once again, but the MACD is positive and struggling to point out an outlook. The rejection of prices above 160 has formed a candle with a longer wick on the downside, however, lacking a conviction for a strong selling momentum. If prices were to break below 150, this could trigger a test of 147.65. On the upside, futures need to take out 160 and then robust resistance at 10 DMA at 162.66. Indicators point to further selling pressure today, but the momentum is set to remain marginal.
Ldn 2nd Month Coffee Futures
Ldn coffee futures jumped higher yesterday as protracted buying pressure triggered a close on the front foot at 1818. The stochastics have converged on the upside once again, and %K/%D just gave a buy signal as it converged out of the oversold. Likewise, the MACD diff is positive and diverging, confirming a continued bullish momentum; this could set the scene for higher prices to 1827, but futures need to break above the 10 DMA at 1821 completely. A break above this level would confirm the outlook of higher prices up to 1872. On the downside, a complete break below the support level at the 1790 level and an appetite for lower prices could set the scene for 1741. Two-line strike formation, however, could point to a continuation of the recent trend on the downside. To confirm this, the resistance a 10 DMA has to hold in the meantime.
NY 2nd Month Cocoa Futures
NY cocoa futures sold off yesterday as protracted selling pressure triggered a break of support at 10 and 100 DMAs before closing at 2499. The stochastics are falling, and the MACD diff is positive and converging, suggesting we could see prices continue to weaken in the near term. The close was near the lows, and the bearish indicators suggest we could see prices fall further and test 2420 in the coming sessions. If this level is broken, then this could prompt a test of 2400. Alternatively, a break back above the 100 and 10 DMAs at 2468 and 2499, respectively, could suggest appetite back above 2543. Selling pressure has been strong, and this could trigger further losses in the near term.
Ldn 2nd Month Cocoa Futures
Another day of lacklustre trading was seen in the Ldn cocoa market as the futures struggled to gain momentum, closing marginally lower at 1947. The stochastics are continuing to fall, with %K/%D edging closer to the oversold now, and the MACD diff just converged on the downside, a strong sell signal, suggesting further downside in the near term. To confirm the strong momentum, the futures need to break below 1950 completely before targeting 50 DMA at 1906 and 1900. On the upside, a test of 1970 and then 2000 could suggest an appetite back above the current levels. To confirm the indicators, the futures need to weaken into the 50 DMA in the near term.
