NY 2nd Month Sugar Futures
NY sugar futures edged lower yesterday after prices tested the 21.50 level, prompting a close at 21.51. The stochastics are rising, with %K/%D diverging on the upside, and the MACD diff is positive and flat, suggesting waning buying pressures. To confirm the rejection of prices back above 22.00, futures need to take out support at the 10 DMA and then target 21.00. On the upside, futures need to close above 40 DMA at 22.31 and then test 22.50 in order to confirm the outlook of higher prices. We expect futures to remain on the back foot in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures held their nerve yesterday, causing the market to close at 599.20. The stochastics are rising, with %K/%D diverging on the upside, and the MACD diff is positive and diverging, suggesting higher prices in the near term. To confirm the outlook of higher prices, futures need to close back above 600 and then target 615. The 10 DMA is closing in and supporting prices on the downside. However, prices need to break below this level to trigger losses to 580. The narrow candle body with a long upper wick points to market uncertainty about the direction of the move, and the futures need to break above the current resistance to confirm the near-term outlook.
NY 2nd Month Coffee Futures
NY coffee futures opened lower day-on-day but gained marginal ground to close at 183.85. The %K/%D is edging towards the oversold. The MACD diff just converged on the downside, suggesting a further appetite for lower prices, but futures need to break below the psychological levels of 180 to trigger the momentum. A break below this level towards 175 would confirm the strong bearish momentum. Conversely, appetite for prices above the 10 DMA at 185 could trigger a test of resistance of 190. A doji candle with a longer lower wick shows rejection of lower prices, despite indicators pointing to a growing upside appetite. We expect futures to remain on the back foot in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday, causing the market to close at 3277. The stochastics are falling, with %K/%D diverging on the downside, 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 at 3262 completely and then target 3200. However, a break above 3300 could set the scene for 3400. The narrow candle body with a long upper wick points to market uncertainty about the direction of the move, and the futures need to break out of current resistance/support to confirm the near-term outlook.
NY 2nd Month Cocoa Futures
NY futures opened lower day-on-day, but support at 6500 helped the prices close higher at 6759. The stochastics are seen converging on the downside, with the %K/%D falling out of the overbought. The MACD diff is positive and converging. This suggests that we could see the recent upside momentum subside and the trend to shift into a more bearish one in the near term. To confirm this, the futures need to break below the robust support level at 6500 before targeting 6000. On the upside, the 10 DMA provides resistance. If this level is broken above, this could set the scene for a resistance level at 7000. The indicators suggest waning buying pressures in the near term; we expect futures to hold their nerve at current levels today.
Ldn 2nd Month Cocoa Futures
Ldn cocoa broke below the 5500 level yesterday but managed to close higher day-on-day at 5480. The stochastics have converged on the downside, as the MACD diff is negative and diverging, signalling softer prices in the near term. This suggests we could see lower prices towards the support of 5000, but the market needs to take out immediate support at 5135 beforehand. On the upside, if the resistance around 10 DMA at 5498 is taken out, we could see prices gain back through to 5973. A longer upper wick points to the appetite for higher prices; however, futures need to take out 5500 in order to confirm the outlook on the upside.
