NY 2nd Month Sugar Futures
NY sugar futures edged lower yesterday after prices broke below 27.00, prompting a close at 26.24. The stochastics are falling, with %K/%D edging towards oversold, and the MACD diff just converged on the downside, suggesting growing downside conviction. To confirm the bearish indicators and rejection of prices above 27.00, futures need to take out support at 26.00 and then target 40 DMA at 25.50. On the upside, futures need to close above 10 DMA at 27.08 and then test the 27.25 level in order to confirm the outlook of higher prices towards 28.00. We expect futures to weaken in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures weakened yesterday, falling below the 710 level. The market closed at 706.60. The stochastics are falling, and the MACD diff is also negative and diverging, pointing to a near-term decline in prices. Prices need to break below support at 40 DMA at 700.49 before targeting 100 DMA at 686.55. This would confirm the rejection of higher prices and suggest a change of trend on the downside. Conversely, if support at 700 holds firm, this could trigger gains towards the resistance at 10 DMA at 725.15. A breach of this level would confirm the outlook for higher prices, with gains seen towards 750. In the longer run, prices need to break below the lower trend channel. We expect the momentum to remain on the back foot in the near term.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve yesterday as intraday trading saw futures test appetite at 150. This level held firm, and futures closed at 151.90. The stochastics are falling, with %K trading towards the oversold, and the MACD diff is negative and diverging, signalling growing selling pressures. To confirm the outlook for lower prices, futures need to break below the support at 150, which could set the scene for futures to test 147.20. On the upside, the market needs to take out resistance of 10 and 40 DMA at 155.00 and then resistance at 160. Despite recent downside pressures, yesterday’s long upper wick points to a lack of appetite below 150.
Ldn 2nd Month Coffee Futures
Ldn coffee futures gapped lower yesterday, breaking below the 2400 level, but support at 2350 caused the market to close at 2352. The stochastics are falling, with %K/%D diverging on the downside and now falling into the oversold, and the MACD diff is negative and diverging, suggesting lower prices in the near term. To confirm this momentum, a break below support at 2350 could set the scene for 2300. On the upside, futures need to close back above all the DMAs, with 40 and 10 DMA at 2464 and 2486, respectively, and then target 2518. The narrow candle body with a longer upper wick points to a lack of appetite below the new support level while the negative trend is continuing.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday as intraday trading caused the market to close at 3502. The stochastics are falling, and the MACD diff is negative and diverging, suggesting lower prices in the near term. The RSI is also falling; to confirm the outlook of lower prices, futures need to close back below 3483 and then target the robust trend support at 3405. The 40 DMA is starting to close in and resisting prices on the upside. However, a break above that level could set the scene for 3600. A narrow-bodied candle with short wicks after a long bearish candle points to market uncertainty about lower prices, and the futures need to break out of current resistance/support to confirm the longer-term outlook.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve yesterday as intraday trading saw futures test appetite at 2950. This level held firm, and the future closed at 2952. The stochastics are falling, with %K/%D trading into the oversold, and the MACD diff is negative and diverging, signalling growing selling pressures. To confirm the outlook for lower prices, futures need to break below the support at 2950, which could set the scene for futures to take out the support at 2845. On the upside, the market needs to take out resistance of 10 DMA at 2993 and then resistance at 3000. The candle found support above 2950, and a longer upper wick signals a lack of appetite for lower prices. If the futures break below the current support, we could see prices edge lower.
