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Authors
Daria Efanova

Daria Efanova Head of Research

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NY 2nd Month Sugar Futures

NY Sugar 10072024

NY sugar futures weakened yesterday as a lack of appetite for prices above 20.50 triggered a close on the back foot at 20.03. The stochastics are falling, with %K/%D diverging on the downside out of the oversold, and this could improve downside momentum. The MACD diff is starting to weaken, and it is about to converge on the downside, supporting the outlook for lower prices. A break of 20.00 support may pave the way for lower prices to the 19.80 level. On the upside, if prices can take out the 40 DMA at 19.17 and then 10 DMA at 20.28, this would confirm the trend, with the psychological level at 20.50. We believe that there is an appetite for lower prices in the near term.

Tables 1 (400)

Ldn 2nd Month Sugar Futures

Ldn Sugar 10072024

Ldn sugar sold off yesterday as protracted selling pressure triggered a close on the back foot at 548.20. The stochastics are falling, and %K/%D is diverging on the downside, sending a sell signal. The MACD diff just converged on the downside, pointing to growing downside pressures. The break below the current support of 40 DMA at 540.04 could set the scene for lower prices towards 512. A break below this would confirm the longer-term trend for falling prices. On the upside, resistance at 580.70 has proven to be strong, and a break above that level would strengthen the bullish momentum. This could also trigger gains towards the 600. Futures have been struggling above the 10 and 100 DMA resistances, suggesting that there is more appetite on the downside. Full candles on the downside suggest an increasing appetite for lower levels in the near term.

Tables 2 (399)

NY 2nd Month Coffee Futures

NY Coffee 10072024

NY coffee futures skyrocketed in recent sessions, and yesterday, the protracted buying pressure triggered a close on the front foot at 249.95, breaching April highs. The %K/%D is diverging on the upside closer to the overbought. The MACD diff is positive and diverging, outlining the recent market rally. On the downside, a break back below the support level of 240 could trigger losses back towards 10 DMA at 229.65, and a break below 220 would confirm the outlook of lower prices in the longer term. On the upside, a break above 250 could trigger gains towards new highs. The market rally has been strong, with a long candle body confirming the strength of bull sentiment. We expect prices to remain elevated above 240 in the near term.

Tables 3 (398)

Ldn 2nd Month Coffee Futures

Ldn Coffee 10072024

Ldn coffee futures surged yesterday, breaking above the robust resistance at 4500 and closing at 4634. The stochastics are rising, with %K/%D diverging on the upside closer to the overbought territory, and the MACD diff is positive and diverging. The reaffirmation of support at 4500 could set the scene for higher prices back to test the 4650 – yesterday’s high. This would confirm the three white soldiers’ formation and the outlook for higher prices to 4700. On the downside, futures need to break below the support of 4338 in order to end the recent bull trend. Then, 4200 and 4000 are providing robust support levels. The market needs to gain a footing above the 4650 in the immediate term to confirm a further bullish outlook.

Tables 4 (400)

NY 2nd Month Cocoa Futures

NY Cocoa 10072024

NY cocoa futures edged higher yesterday, breaking above resistance at 8000 and closing at 8150. The stochastics are rising, with %K/%D just converging on the upside, and the MACD diff is negative and converging, suggesting further gains in the near term. To confirm this, futures must first break above the 40 DMA resistance at 8239, which could set the scene for higher prices to test the 8500 and 9000 levels. On the downside, futures need to break below the support of 10 DMA in order to end the recent sessions’ bull trend. Yesterday’s break above 8000 highlights the appetite for higher prices. The market needs to gain a footing above the 40 DMA in the immediate term to improve the outlook.

Tables 5 (398)

Ldn 2nd Month Cocoa Futures

Ldn Cocoa 10072024

Ldn cocoa futures held their nerve yesterday, causing the market to close at 6710. The stochastics are rising, with %K/%D diverging out of the oversold, and the MACD diff is negative and converging, suggesting higher prices in the near term. To confirm the outlook of higher prices, futures need to close above the 40 DMA at 6785 and then target 7000. The 10 DMA is closing in and supporting prices on the downside. A break below this level could set the scene for 6000. A bullish candle with a narrow body and a longer lower wick points to a growing appetite for higher prices, but the futures need to break out of current resistance to confirm the near-term outlook on the upside.

Tables 6 (399)

 

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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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