NY 2nd Month Sugar Futures
NY sugar futures edged lower yesterday as prices failed above 22.50 once again, and then closed below at 22.17. The indicators are now favouring the upside; the stochastics are rising, with %K/%D just converging on the upside, a strong buy signal, and edging out of the oversold area. The MACD diff is negative and converging on the upside, confirming growing buying pressures. A close below the 40 DMA level at 22.17 would bring into play the support at 22.00. On the upside, prices need to find support above 10 DMA at 22.52 and the previous week’s high at 23.00. Indicators point to growing upside momentum; however, prices have struggled to break out of the current support/resistance, and a break out of these levels would set the scene for a trend change.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged lower yesterday as prices closed at 606.50. The indicators point to growing buying pressures, with %K/%D converging on the upside out of the oversold area, suggesting growing buying pressures. A break below the 615 level would bring into play the recent sessions’ resistance level at 10 DMA at 624.08; this would help confirm the change of trend. Prices have been relatively well supported above 600, and a break below this level could bring into play the next support level at 580. We expect futures to edge higher in the near term as prices approach the moving averages.
NY 2nd Month Coffee Futures
NY coffee futures edged lower yesterday as prices continued to fluctuate within the recent trading range, closing at 183.15. The indicators continue to favour the downside, with %K/%D seen diverging into the oversold area, suggesting further weakness in the near term. A break below the 180 level would bring into play the support level at 100 DMA. Prices have been relatively well supported above 182, and in order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above the shorter-term moving averages and then target the 190 level in the near term, a firm resistance level. The break above that resistance level would confirm the outlook for higher prices.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as intraday trading caused the market to close at 3113. The stochastics are falling, and the MACD diff is negative and diverging, suggesting lower prices in the near term. To confirm the outlook of lower prices, futures need to close back below 40 DMA at 3071 and then target 3050. The 40 DMA is starting to close in and supporting prices. However, a break above the 10 DMA could set the scene for 320. Continued fluctuations in the last couple of sessions point to market uncertainty, and the futures need to break out of current resistance/support to confirm the longer-term outlook.
NY 2nd Month Cocoa Futures
NY cocoa opened higher yesterday but struggled to break above the 6000 level, causing futures to close at 5860. The stochastics are overbought, with %K/%D seen diverging on the upside. The MACD diff is positive and diverging. A bearish candle with a longer lower wick suggests slight uncertainty about prices above the 600 level; however, a break above this level could set the scene for higher prices. This would confirm the trend for rising prices, up to 6500. On the downside, a breach of support at 10 DMA at 5625 would strengthen the bearish momentum. This could also trigger losses towards the 5500 level. The longer-term trend is likely to prevail, and we expect prices to remain elevated in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures opened higher day-on-day yesterday, closing above 5000 at 5062. The stochastics are rising, with %K/%D diverging on the upside, which could suggest a continuation of momentum in the near term. The MACD diff is positive and diverging. On the upside, futures need to break above the robust resistance level at 5100 to trigger the momentum higher for new historic highs. Conversely, appetite for prices below 5000 could trigger a test of support of 10 DMA, confirming the downside trend. A dragonfly doji candle shows rejection of higher prices and could point to a pause in bullish sentiment. However, support at 5000 should remain robust, and we expect futures to trade above this level in the near term.
