1. Soft Commodities Outlook
  2. Softs Technical Charts

NY 2nd Month Sugar Futures

NY Sugar 08022023

NY sugar futures edged higher yesterday as trading saw prices close at 19.68. The stochastics are edging out of oversold after having converged on the downside, and the MACD diff is positive and converging. A break of 19.50 could trigger losses through 19.21, with the tertiary level at 40 DMA at 18.93. On the upside, a break above 10 DMA at 19.78 could set the scene for bullish momentum towards 20.00. After the last session’s market indecisiveness – the spinning top formation – as prices struggle above 10 DMA, we could see more downside movement in the near term.

Tables 1 (267)

Ldn 2nd Month Sugar Futures

Ldn Sugar 08022023

Ldn sugar held the nerve yesterday, as intraday trading caused futures to close above 553.20 at 555.60. RSI is falling marginally, and %K/%D is diverging on the downside out of the overbought area, confirming the change of trend in the near term. The MACD diff is also softening, confirming the continuation of recent selling momentum. To confirm this, prices need to close below 553.20 and then target trend support at 550. On the upside, the rejection of prices below current levels could trigger gains back to the 10 DMA level at 555.82 before targeting 560. Buying pressure has been weak, but the trend has been on the downside in recent days. The indicators point to an acceleration of that momentum. The futures have been supported above the trend line, and we anticipate further softness to target but struggle below this level in the near term.

Tables 2 (266)

NY 2nd Month Coffee Futures

NY Coffee 0802223

NY coffee futures edged higher yesterday, as intraday trading caused futures to test appetite at the 100 DMA once again and then close at 177.35. The stochastics are falling, and the MACD diff is positive and converging. In order to confirm the outlook for lower prices, futures need to close back below 10 DMA at 173.31 and then target the 40 DMA level at 164.77. The resistance at 100 DMA at 176.96 is capping prices on the upside, and if futures break above this level, it could trigger gains to 180. The two moving averages are creating a tight support/resistance level, but with indicators suggesting lower prices in the near term, we expect futures to soften.

Tables 3 (265)

Ldn 2nd Month Coffee Futures

Ldn Coffee 08022023

Ldn coffee futures jumped higher yesterday as prices closed at 2075. The indicators favour the upside, with %K/%D converging on the upside again in overbought, and MACD diff is positive and diverging, suggesting growing buying pressures. A break above 2082 would bring into play the resistance level at 2100. On the downside, futures need to break below 10 DMA at 2026, and then target the recent lows of 2000 in the near term. A strong candle body suggests a strong appetite for prices above 2082, and we expect this level to be tested again. The moving averages also provide robust support levels, and we expect prices to strengthen in the near term,

Tables 4 (267)

NY 2nd Month Cocoa Futures

NY Cocoa 08022023

NY cocoa futures softened yesterday after finding support above 2600. The market closed at 2614. The stochastics continue to soften, with %K/%D weakening, and the MACD diff is negative and diverging, suggesting we could see lower prices in the near term through support 2600. A break below this level would bring into play the 40 DMA level at 2601, which could set the scene for support at 2575 in the longer term. On the upside, futures need to gain back above 10 DMA at 2635 in order to confirm upside momentum. The reaffirmation of support there could trigger gains towards the level at 2671; this could strengthen the trend in the long run on the upside. Longer lower wick, where most of the trading took place in the upper ranges, points to a lack of appetite to break below the robust support level, but we expect prices to soften in the near term.

Tables 5 (265)

Ldn 2nd Month Cocoa Futures

Ldn Cocoa 08022023

Ldn cocoa futures opened higher yesterday, but the resistance of 2030 caused futures to close lower on the day at 2025. The stochastics are seen tailing off, with the %K/%D now rising marginally and suggesting that prices might converge on the downside, and the MACD diff is positive and converging. A break of the 2015 level could trigger losses through trend support at 2005, with the tertiary level at 2000. On the upside, a break above current levels could set the scene for bullish momentum towards 2050. Rejection of prices above near-term resistance in recent days and indicators point to softening price momentum in the near term.

Tables 6 (266)




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