1. Soft Commodities Outlook
  2. Softs Technical Charts

NY 2nd Month Sugar Futures

NY Sugar 13032024

NY sugar futures opened higher yesterday, but resistance of 22.00 caused futures to close lower on the day at 21.63. The stochastics are seen diverging on the upside, with the %K/%D now rising higher in the neutral territory, and the MACD diff is now positive and diverging, suggesting growing buying pressures. A break back below the 10 DMA could trigger losses through 21.04, with the tertiary level at 20.50. On the upside, a break above 22.00 could set the scene for bullish momentum towards the 40 DMA at 22.34. A narrowed-bodied candle points to market indecisiveness about higher prices; however, the indicators point to further upside momentum in the near term.

Ldn 2nd Month Sugar Futures

Ldn Sugar 13032024

Ldn sugar futures opened higher day on day yesterday but struggled above 600 to close at 599.50. The stochastics are rising, with the %K/%D edging higher, as the MACD diff is positive and diverging. This suggests we could see further upside momentum in the near term. To confirm this, prices need to break above the 600 level. If the prices break through this level, we could see prices gain ground back through 615 and the 40 DMA, respectively. On the downside, a break below the 10 DMA level could signal further downside potential. A thin, bearish candle body after a robust gain points to uncertainty about higher prices, but we expect futures to gain momentum on the upside in the near term.

NY 2nd Month Coffee Futures

NY Coffee 13032024

NY coffee futures held their nerve yesterday as intraday trading saw futures test appetite at the shorter-term moving averages once again. These levels held firm, and futures closed at 185.90. The stochastics are falling, with %K/%D seen converging towards the oversold, and the MACD diff is positive but is also converging on the downside, signalling growing selling pressures. To confirm the outlook for lower prices, futures need to break below the support at 185, which could set the scene for futures to take out the support at 180. On the upside, the market needs to take out resistance of 188.50 and then resistance at 190. A longer upper wick signals an appetite for higher prices. If the futures break above the current resistance, we could see prices edge higher, but indicators point to an acceleration on a downtrend.

Ldn 2nd Month Coffee Futures

Ldn Coffee 13032024

Ldn coffee futures held their nerve yesterday as intraday trading caused the market to close at 3307. The stochastics are falling, and the MACD diff is positive and converging, suggesting lower prices in the near term. To confirm the outlook for lower prices, futures need to close back below the 10 DMA and then target 3200. However, a break above 3400 could set the scene for recent highs of 3460. Two narrow-bodied candles with short wicks 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 13032024

NY cocoa futures rallied yesterday, reaching new highs and managing to close just above the resistance of 7000 at 7049. The stochastics are rising into the overbought, with %K/%D diverging on the upside, and the MACD diff is positive and diverging, prompting further buying pressure. We expect futures to remain supported in the near term, with near-term resistance at 7500 and a secondary level at 8000 if buying pressure persists. On the downside, if futures fail above the near-term resistance, then we could see a break back below 7000 before 6500. We expect futures to remain elevated in the near term.

Ldn 2nd Month Cocoa Futures

Ldn Cocoa 13032024

Ldn cocoa futures skyrocketed in recent sessions, and yesterday’s protracted buying pressure triggered a close on the front foot at 5829, a new high. The %K/%D is diverging on the upside, about to enter the overbought territory once again. The MACD diff is negative and converging, outlining the recent market rally. On the downside, a break back below the support level of 5500 could trigger losses back towards 10 DMA at 5404; a break below this level would confirm the outlook of lower prices in the longer term. On the upside, a complete break above 5800 could trigger gains through resistance towards 6000. The market rally has been strong, with a long-bodied candle and little shadow. We could see prices trending even higher today as a result.



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