1. Soft Commodities Outlook
  2. Softs Technical Charts

NY 2nd Month Sugar Futures

NY Sugar 20122023

NY sugar futures continued to break lower following the recent sell-off; however, the momentum is seen slowing as the prices found support at 20.50 and closed at 20.91. The stochastics remain oversold but are now seeing edging higher, and the MACD diff is negative and converging, suggesting an upcoming change of trend. The candle formed a longer lower wick, a hammer formation, and could be a sign of a trend reversal in the near term. If this materialises, the levels could break back above 21.00 before 10 DMA at 21.58. On the downside, if the current support level at 20.50 is broken below, the next level of support stands at 20.00. We expect the recent downside momentum to slow in the near term and find support at current levels.

Ldn 2nd Month Sugar Futures

Ldn Sugar 20122023

Ldn sugar futures opened lower yesterday but consolidated during the day, testing the 600 level. The market closed at 599.30. The %K/%D is oversold and edging higher. The MACD diff is negative and converging, suggesting waning selling pressure. The indicators point to higher prices in the near term, and to confirm the confirmation of current support, prices need to take out the 600 level. A break above this level towards the 10 DMA at 616.69 would confirm the waning bearish momentum. Conversely, appetite for prices below 590 could trigger a test of the fib support at 580.70. Yesterday’s candle signals uncertainty about the outlook for lower prices, and if the futures continue to struggle below 600, we could see prices edge higher in the near term.

NY 2nd Month Coffee Futures

NY Coffee 20122023

NY coffee futures rallied yesterday as protracted buying pressure triggered a close on the front foot at 199.60. The %K/%D is diverging on the upside into the overbought territory. The MACD diff is positive and diverging, confirming growing buying pressures. On the upside, finding support above the 190 level could trigger gains towards 200 and 204.90, the April high. On the downside, a break below the key support level of 190 could trigger losses back towards the 10 DMA level at 185.85. Futures have been supported at this level, and a break below could set the scene for lower prices in the near term. The bullish engulfing formation and positive indicators highlight that the buying pressure is strong, and a continued bullish outlook is on the horizon.

Ldn 2nd Month Coffee Futures

Ldn Coffee 20122023

Ldn coffee futures rallied yesterday as protracted buying pressure triggered a close on the front foot above 2900 at 2932, breaching new highs. The %K/%D is gaining further momentum into the overbought. The MACD diff is positive and converging, confirming rising buying pressures. On the downside, a break below the key support level of 2800 could trigger losses back towards the 10 DMA level of 2704; a break below it would confirm the outlook of lower prices in the longer term. On the upside, a complete break of 2900 could trigger gains towards 3000. A long candle body points to more certainty in the bullish momentum, and a close above 2900 would confirm the outlook for higher prices.

NY 2nd Month Cocoa Futures

NY Cocoa 20122023

NY cocoa futures held their nerve yesterday as intraday trading saw futures test appetite at the 10 DMA level once again. This level held firm, and the future closed at 4244. The stochastics have converged on the upside, and the MACD diff is negative and converging, signalling waning selling pressures. To confirm the outlook for higher prices, futures need to break above 4250, which could set the scene for futures to test 4294, a recent high. On the downside, the market needs to take out support at 10 DMA and then 4200. Yesterday’s candle kept within the band of resistance/support that held prices constrained in the last couple of sessions, and we expect sideways momentum to continue in the near term.

Ldn 2nd Month Cocoa Futures

Ldn Cocoa 20122023

Ldn cocoa futures edged lower yesterday as prices struggled to break above the 40 DMA once again, and the market closed at 3421. The stochastics are falling, about to enter the oversold. The MACD diff is negative and remained unchanged day-to-day, suggesting a pause in the previous trend. The reaffirmation of support above 3400 could trigger gains towards the 40 and 10 DMA resistance levels. Conversely, a breach of support at 3400 may set the scene for lower prices to the trend support. If futures take out of this level, this would reaffirm the downward trend. The short-term moving averages are providing a robust resistance for prices, and we expect prices to weaken marginally in the near term.




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