NY 2nd Month Sugar Futures
NY sugar futures weakened yesterday as they failed above the 10 DMA resistance, prompting futures to close below the robust support level of 18.00 at 17.92. The stochastics continue to fall as they enter the oversold. The MACD diff is negative and diverging, pointing to a growing selling pressure. A break below 17.89, which is the January low, would confirm the outlook for lower prices. This may pave the way for lower prices to 17.50, with the tertiary level at 17.00. Conversely, the reaffirmation of support above at 18.00 would suggest higher prices and a close above 10 DMA at 18.39, setting the scene for higher prices towards 18.63. Yesterday’s candle body suggests an appetite for lower prices; the indicators confirm further softness.
Ldn 2nd Month Sugar Futures
Ldn sugar futures weakened yesterday after investors rejected prices above the 10 DMA, prompting a close below the robust support of 500 at 495.30. The stochastics are falling; the %K is trading in the oversold territory, suggesting a short-term negative trend. The MACD diff is negative and diverging, indicating improving sentiment on the downside. To confirm further price softness, prices need to hold below the support level of 500 before edging lower to the 490 level. Secondary support stands at 483.70; a break below would confirm the longer-term outlook on the downside. On the upside, to regain upside conviction, futures need to close back above 10 DMA at 509.06 and then 512.60 in the near term. Near-term momentum is on the downside, and the indicators confirm this trend.
NY 2nd Month Coffee Futures
NY coffee futures jumped higher yesterday after the support level at 240 held firm, and futures closed at 248.50. The indicators continue to point to higher prices in the near term, with the stochastics edging into the overbought and the MACD diff is positive and converging. To confirm further upside appetite, the futures need to break above 255.30 today before reattempting to break the 260 level. Alternatively, a break back below the 240 level could trigger losses to the shorter-term moving averages/ A longer upper wick yesterday suggests market hesitation for higher prices in the near term. We expect the marginal upside momentum to prevail today.
Ldn 2nd Month Coffee Futures
Ldn coffee futures continued to strengthen in recent days, breaking above the 4500 level yesterday and closing at 4619, testing the highs not seen since mid-July. The stochastics are continuing to strengthen further into the overbought, and the MACD diff is positive and diverging, suggesting further upside in the near term. If there is further impetus for higher prices, we could see the futures retest the 4664 level today before attempting to break higher to 4700. If, however, the indicators point to the trend support. We expect the prices to remain supported above the trendline today.
NY 2nd Month Cocoa Futures
NY cocoa futures edged higher yesterday, breaking above resistance at 40 DMA and closing at 7640. The stochastics are entering in the overbought territory, and the MACD diff is positive and diverging, outlining recent bullish sessions. On the upside, futures need to break completely above 7650 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 8000; this could strengthen the trend on the upside in the long run. A breakback below the current support at 40 DMA would bring into play the 10 DMA level at 7111. We see prices edge higher in the near term, highlighted by recent bullish momentum and positive indicators; however, futures need to close above the current resistance of 8000 to confirm the outlook for higher prices.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve yesterday as intraday trading caused the market to close below the 100 DMA of 5539 at 5514. The stochastics are rising marginally, and the MACD diff is positive and diverging, suggesting higher prices in the near term. To confirm the outlook for higher prices, futures need to close back above the 100 DMA level before targeting 40 DMA at 5852. The 10 DMA is starting to close in and supporting prices from the downside. Two narrow-bodied candles with longer 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.
