NY 2nd Month Sugar Futures
NY sugar futures softened yesterday after finding resistance at 19.80 once again. The market closed at 19.41. The stochastics are diverging on the upside out of the oversold territory, and the MACD diff just converged on the upside, suggesting we could see higher prices in the near term through the current resistance level. A break above this level would bring into play the 20.00, but futures must first breach the 10 DMA resistance at 19.49 to suggest an appetite for higher prices. On the downside, futures need to edge back to 19.00 – a robust support level. A breach of support here could trigger losses towards new lows; this could strengthen the trend in the long run on the downside. We believe that futures will aim to test the 10 DMA at the 19.80 level today once again.
Ldn 2nd Month Sugar Futures
Prices weakened yesterday as futures struggled to break above the 550 resistance once again, causing futures to close at 546.50. The MACD diff is negative and converging, and the stochastics are rising out of the oversold territory, suggesting a growing appetite for higher levels. The resistance of 550 has been robust as prices struggled to break above it in recent trading sessions, and in order to suggest further upside, prices need to break above the 10 DMA at 548.61, which is now capping futures’ gains. Conversely, to confirm the resistance at these levels, the market needs to break below 540 before targeting lower levels. We expect futures to remain within the recent trading range as prices aim to break above the near-term resistance level.
NY 2nd Month Coffee Futures
NY coffee sold off yesterday as protracted selling pressure triggered a close on the back foot at 216.65. The stochastics are falling, as the %K/%D is falling into the oversold territory. The MACD diff is negative and diverging. A full bearish candle suggests growing selling pressures; this could set the scene for lower prices to break below the 212.50 support level. This would confirm the trend for falling prices, down to the 40 DMA at 203.52. On the upside, resistance at 10 DMA at 227.49 has proven to be strong, and a break above that level would strengthen the bullish momentum. This could also trigger gains towards the 240 level. The bearish engulfing pattern suggests an impending market downturn, and we expect prices to continue to soften to 212 in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures softened yesterday after breaking below the support of 10 DMA. The market closed at 4021. The stochastics are falling, and the MACD diff is negative and diverging, suggesting we could see lower prices in the near term through the support of 4000. A break below this level would bring into play the 40 DMA level 3903. On the upside, futures need to gain back above 10 DMA at 4149 in order to confirm upside momentum. Appetite for higher prices here could trigger gains towards the level at 4200; this could strengthen the trend in the long run on the upside. A long candle body with no shadow points to an increased appetite on the downside, and we could see the price edge lower in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures started the day on the back foot yesterday, following the previous downside sessions, which prompted futures to breach the 10,000 level. However, yesterday’s downside failed to hold, and futures gained further momentum on the upside in the latter half of the day to close back above the 40 DMA level at 9283. The stochastics continue to reflect recent days’ weakness, with the %K/%D falling on the downside and the MACD diff negative and diverging. The appetite back above 40 DMA could set the scene for higher prices back to test the 10000, confirming the hammer formation. On the downside, futures need to break below the support of 8000 in order to confirm the bearish trend. Yesterday’s candle suggests that the bears might have exhausted the downside, with elevated volumes confirming that, and we might see some moderate upside in the coming days.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures opened lower yesterday after piercing the support level of 7000. However, the downside appetite failed to hold, as markets struggled below this level, and futures closed higher day-on-day at 7929. The stochastics continue to fall, with %K/%D just diverging on the downside, and the MACD diff is negative and diverging to highlight the recent days’ sell-off. The appetite back above 8000 could set the scene for higher prices back to test the 9000, confirming the hammer formation. On the downside, futures need to break below the 40 DMA support, currently at 7399, in order to confirm the bearish trend. Yesterday’s trading session highlighted a lack of appetite below the 7000 level, and we expect to see some moderate gains in the coming days.
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