NY 2nd Month Sugar Futures
NY sugar futures jumped higher once again yesterday, breaching resistance of 23.00 to settle at 23.12. The stochastics continue to edge higher into the overbought as the MACD diff is positive and diverging, suggesting that the upside momentum still has more room. To confirm this, futures need to break above the 23.64 level before targeting resistance at 24.00. Alternatively, if prices break below 23.00, it could trigger losses back to the 10 DMA level at 20.99. We expect futures to remain elevated in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures gained ground yesterday but struggled above the 600 level to close at 598. The stochastics are beginning to rise once again, with the %K/%D edging higher in the overbought, as the MACD diff is positive and diverging on the upside. This suggests we could see further bullish momentum in the near term, with prices edging towards 614 before testing the 620 level. Futures, however, need to break above the 600 level first to confirm this. On the downside, the candle found support at 580, and if the prices break through this level, we could see prices retreat back through the 10 DMA level at 533.07. The bullish candle with a long body and longer upper and lower wicks after a similar bearish candle points to a waning buying appetite to break above the current resistance level.
NY 2nd Month Coffee Futures
NY coffee futures edged higher yesterday, breaking back above the regression line and closing at 265.85. The stochastics are edging towards the overbought territory, and the MACD diff is positive and diverging, outlining recent bullish sessions. On the upside, futures need to break completely above the 270 to confirm upside momentum. The reaffirmation of support here could trigger gains towards new highs for the contract; this could strengthen the trend on the upside in the long run. A break back below the current support would bring into play the 10 DMA level at 257.85, which could set the scene for support at 255.30. We see prices edge higher in the near term; however, futures need to close above 270 to confirm the outlook for higher prices.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as prices struggled above 5369 once again. The %K/%D is converging on the upside, which could suggest growing upside momentum. The MACD diff is positive and flat, suggesting a lack of appetite for the upside, but to suggest an appetite for higher prices, the futures need to break above 5370, a firm resistance, to trigger the momentum. A break above this level towards 5500 would confirm the growing bullish momentum. Conversely, appetite for prices below the 10 DMA level could trigger a test of support at 5000. A short candle body shows rejection of higher prices as futures struggle above that level; if the current resistance is broken, we expect prices to strengthen in the near term, confirming the longer-term trend on the upside.
NY 2nd Month Cocoa Futures
NY cocoa futures opened higher day on the day yesterday but struggled to gain significant momentum once again to close at 6326. The stochastics are falling, with the %K/%D flattening out in the oversold, as the MACD diff is negative and converging. This suggests we could see further upside momentum in the near term. To confirm this, prices need to break above the 10 DMA at around 6656. If the prices break through this level, we could see prices gain ground back through 6720. On the downside, a break below 6200 and 6000 could signal further downside potential. The bearish candle body, after moderate gains, points to a lack of appetite, and we can see prices continue to trade sideways in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures softened marginally yesterday, as moderate weakness saw futures test appetite at 4489 before closing at 4526. The stochastics continue to fall further into the oversold, and the MACD diff is negative and diverging, highlighting future appetite for price weakness. To confirm the outlook for lower prices, futures need to break below the support at 4489, confirming the descending triangle formation. On the upside, to regain upside momentum, it would have to trade back above the trendline before the 10 DMA at 4822. We expect the futures to edge lower in the meantime.
