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Daria Efanova

Daria Efanova Head of Research

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NY 2nd Month Sugar Futures

NY Sugar 18032024

NY sugar futures held their nerve on Friday as intraday trading saw futures test appetite at 21.50. This level held firm, and the future closed at 21.76. The stochastics are rising, with %K entering the overbought territory, and the MACD diff is positive and diverging, signalling growing buying pressures. To confirm the outlook for higher prices, futures need to break the resistance above the 22.00 level, which could set the scene for futures to take out the 40 DMA at 22.30. On the downside, the market needs to take out support of 21.50 and then the moving average at 21.39. The candle found support above 21.50, and little candle shadow signals appetite for higher prices. If the futures break above 22.00, we could see prices edge higher in the near term.

Tables 1 (377)

Ldn 2nd Month Sugar Futures

Ldn Sugar 18032024

Ldn sugar futures edged higher on Friday and managed to close above the 600 level at 607.30. The indicators suggest we could see higher prices in the near term. The stochastics are rising, with %K/%D edging higher into the overbought territory, and the MACD diff is positive and diverging, suggesting growing buying pressures. We expect futures to edge higher in the near term towards 615, with the next robust resistance at 40 DMA at 623.60. On the downside, if futures fail back into 600, then we could see futures break back below the 10 DMA at 591.84. The narrowing DMA support and resistance levels suggest that a break below/above these levels could strengthen the momentum. We expect futures to firm in the near term.

Tables 2 (376)

NY 2nd Month Coffee Futures

NY Coffee 18032024

NY coffee held their nerve on Friday as prices closed at 182.95. The stochastics are falling, with %K/%D about to enter the oversold territory. The MACD is now negative and diverging, pointing to lower prices in the near term. The rejection of higher prices above the shorter-term moving averages may prompt a break back towards the support of 100 DMA at 180.76. A subsequent breach of this level could trigger strong losses towards 180. On the upside, a break of 10 and 40 DMAs at 185 may prompt futures to retest recent highs at 192. A short candle body and little shadow point to a lack of appetite out of the current trading range; however, the future needs to break below current support to confirm the indicators’ outlook for lower prices.

Tables 3 (375)

Ldn 2nd Month Coffee Futures

Ldn Coffee 18032024

Ldn coffee futures held their nerve on Friday as intraday trading saw futures test appetite at 10 DMA. This level held firm, and futures closed at 3279. The stochastics are falling, but %K/%D is now seen converging on the upside. The MACD diff is positive, but the downside momentum is stalling, signalling waning selling pressures. To confirm the outlook for higher prices, futures need to break above the 3350 level, which could set the scene for futures to take out the robust resistance at 3400. On the downside, the market needs to take out the support of 10 DMA at 3279 and then 3200. The candle found support above the 10 DMA, and a long lower wick signals a lack of appetite for lower prices. We expect futures to remain elevated in the near term.

Tables 4 (377)

NY 2nd Month Cocoa Futures

NY Cocoa 18032024

NY cocoa futures rallied once again on Friday, as protracted buying pressure triggered a close on the front foot above 7000 at 7224. The %K/%D fluctuates in the overbought while the MACD diff edged higher, and we are struggling to point out an outlook. On the downside, a break back below the support level of 10 DMA at 6723 could trigger losses back towards 6500, which would help confirm the outlook of lower prices in the longer term. On the upside, a complete break above 7300 could trigger gains through resistance towards 7500, confirming new highs. The market rally has been strong in recent sessions, with a strong candle body confirming the strength of bull sentiment. We expect futures to remain elevated in the near term.

Tables 5 (375)

Ldn 2nd Month Cocoa Futures

Ldn Cocoa 18032024

Ldn cocoa strengthened on Friday as protracted buying pressure triggered a close on the front foot at 5775. The stochastics are rising, with %K/%D about to converge on the upside back into the overbought. The MACD diff is negative and converging. A long bullish candle body with short wicks suggests growing buying pressures; this could set the scene for higher prices to break above the robust resistance at 5870. This would confirm the trend for rising prices, up to 6000. On the downside, a breach of support at 10 DMA at 5546 would strengthen the bearish momentum. This could also trigger losses towards 5134. Indicators point to higher prices, but with prices failing above the resistance of 5873, futures are capped on the upside.

Tables 6 (376)

 

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Disclaimer

This is a marketing communication. The information in this report is provided solely for informational purposes and should not be regarded as a recommendation to buy, sell or otherwise deal in any particular investment. Please be aware that, where any views have been expressed in this report, the author of this report may have had many, varied views over the past 12 months, including contrary views.

A large number of views are being generated at all times and these may change quickly. Any valuations or underlying assumptions made are solely based upon the author’s market knowledge and experience.

Please contact the author should you require a copy of any previous reports for comparative purposes. Furthermore, the information in this report has not been prepared in accordance with legal requirements designed to promote the independence of investment research. All information in this report is obtained from sources believed to be reliable and we make no representation as to its completeness or accuracy.

This report is not subject to any prohibition on dealing ahead of the dissemination of investment research. Accordingly, the information may have been acted upon by us for our own purposes and has not been procured for the exclusive benefit of customers. Sucden Financial believes that the information contained within this report is already in the public domain. Private customers should not invest in these products unless they are satisfied that the products are suitable for them and they have sought professional advice. Please read our full risk warnings and disclaimers.

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