1. Soft Commodities Outlook
  2. Softs Technical Charts

NY 2nd Month Sugar Futures

NY Sugar 10112023

NY sugar edged higher yesterday as intraday trading caused futures to test appetite for prices above 26.00; the market closed above at 26.41. Stochastics are rising, with %K/%D having converged on the upside once again and now rising towards the overbought, confirming positive momentum. The MACD diff is positive and diverging, suggesting growing buying pressure. To maintain positive momentum, prices need to close above 26.50 and then target 27.00, which is the September high. On the downside, the rejection of prices above the shorter-term moving averages could trigger losses back to the 100 DMA at 25.21 before targeting 25.00. Buying pressure remains persistent, and indicators point to additional highs. The reaffirmation of support above the DMAs could strengthen the outlook of higher prices once again.

Tables 1 (356)

Ldn 2nd Month Sugar Futures

Ldn Sugar 10112023

Ldn sugar futures edged higher yesterday as intraday trading saw prices test support at 10 DMA. The market closed at 754.70. The %K/%D just converged on the upside, close to the overbought territory. 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 bullish trend, prices need to take out 747.10. A break above this level towards 758 would confirm the strong bullish momentum. Conversely, appetite for prices below the 10 DMA at 740.26 could trigger a test of 40 DMA at 723.75; tertiary support stands at 700. Recent candles suggest further gains are on the horizon, although likely to remain marginal in the near term.

Tables 2 (355)

NY 2nd Month Coffee Futures

NY Coffee 10112023

NY coffee futures edged higher yesterday, breaking above the robust resistance of 171.85 as prices closed at 174.20. The indicators continue to favour the upside, with %K/%D diverging in the overbought and MACD diff just converged on the upside, suggesting growing buying pressures. A break above the 175 level would bring into play 180. In order to indicate an improvement of market sentiment on the downside, futures need to break back below 170 and then target the 10 DMA at 166.30 in the near term. The hanging man candle formation suggests waning buying pressure. The fall today would confirm the change of trend in the near term.

Tables 3 (354)

Ldn 2nd Month Coffee Futures

Ldn Coffee 10112023

Ldn coffee edged higher, but futures failed above 40 DMA yesterday as moderate buying pressure caused futures to close at 2430. The stochastics are rising, with %K/%D diverging on the upside back into the overbought, and the MACD diff is positive and diverging, suggesting higher prices in the near term. However, the reaffirmation of resistance yesterday at 40 DMA at 2382 has formed a shooting star candle, suggesting a waning appetite for higher prices. If prices were to break back above this robust level, this could trigger a test of 2500. To confirm the recent formation, futures need to take out 2400 and then robust support at the moving averages. The indicators are showing there is more upside momentum, and to confirm this, the futures need to break above the near-term resistance.

Tables 4 (356)

NY 2nd Month Cocoa Futures

NY Cocoa 10112023

NY cocoa futures edged higher yesterday as intraday trading saw prices break above 3970 to close at 3972. The %K/%D continues to fluctuate in the overbought, struggling to point out an outlook. The MACD diff, however, is positive and converging. There is a growing appetite for prices above the 4000, which could trigger a test of resistance at 4015. On the downside, to confirm the rejection of the support, prices need to take out 10 DMA at 3898. A break below this level towards 3800 would confirm the strong bearish momentum. Conversely, a doji candle uncertainty about the outlook for lower prices and the futures needs to take out the near-term to confirm the outlook for rising prices. In the meantime, we believe prices will remain supported above the 10 DMA.

Tables 5 (354)

Ldn 2nd Month Cocoa Futures

Ldn Cocoa 10112023

Ldn cocoa futures strengthened yesterday as protracted buying pressure triggered a close on the front foot at 3426. The %K/%D is diverging on the upside further into the overbought. Likewise, the MACD diff is positive and diverging, confirming growing buying pressures. On the upside, an appetite above the 3400 could completely trigger gains through 3430. On the downside, a break below the 10 DMA at 3354 level could trigger losses back towards 3300. That level has been supporting futures prices, and a break below it would signal strong selling pressure. Longer candle signals an appetite for higher prices, and we could see futures make new highs.

Tables 6 (355)




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