NY 2nd Month Sugar Futures
NY sugar prices weakened yesterday as moderate selling pressure triggered a close below the 17.00 support level; the market closed at 16.88. The stochastics are falling, with the %K/%D continuing to weaken into the oversold territory, signalling a continuation of the bearish trend. The MACD is negative and diverging. Yesterday’s candle signals a cautious downside approach as futures are approaching the January lows of 16.64. In order to confirm a continuation of the bearish trend, this support level has to be breached first. Conversely, a break back above 17.00 could set the scene for a test of 10 DMA at 17.22. We expect prices to weaken to the 16.64 level in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures weakened yesterday after investors rejected prices above the January low of 464, prompting a close below at 461.70 – a July 2021 low. The stochastics continue to fall, with the MACD diff negative and diverging, suggesting a short-term negative trend. To confirm the continuation of the bearish trend, prices need to break below the support level at 460 before the 2450 level. Tertiary support stands at 442; 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 472.05 and then 480 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 rallied yesterday, rejecting prices below the robust longer-term trendline as protracted buying pressure triggered a close on the front foot above the 10 DMA resistance at 357.20. The RSI is rising, while %K/%D are diverging on the upside, leaving the oversold territory. The MACD diff is negative and converging, outlining recent market growth. On the downside, a break back below the trendline support level could trigger losses back towards 340, which would help confirm the outlook of lower prices in the longer term. On the upside, a complete break above the 40 DMA at 370 could trigger gains through resistance towards 380. The market rally was strong yesterday, and yesterday’s breakthrough, along with positive indicators, confirm that we could see prices edge higher in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures jumped higher yesterday as prices closed at 4445. The indicators favour the upside, as %K/%D is rising and diverging out of the oversold. MACD diff is negative and converging, outlining recent buying pressures. A break above 10 DMA at 4536 would bring into play the resistance level at 4664. On the downside, futures need to break below 4338, which could then trigger a sell-off to 4200. The jump yesterday suggests further upside momentum, and the indicators point to a continuation of this trend. However, DMAs have created tight support and resistance levels, and prices need to break above 10 DMA to confirm the outlook on the upside.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday as intraday trading saw futures test appetite at the 40 DMA support level. This level held firm, and futures closed at 9277. The stochastics are rising, and the MACD diff is negative and converging, signalling waning selling pressures. To confirm the outlook for higher prices, a complete break above the resistance of 10 DMA at 9186 could set the scene for futures to take out the 9542 level before targeting 10000. On the downside, the market needs to take out support of 40 DMA and then 200 DMA support at 8692. The candle found support above both 10 and 40 DMAs. However, a doji candle signals uncertainty about the outlook for higher prices, and the futures need to take out the 9542 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 at 6431. The stochastics are rising, with %K/%D breaking out of the oversold territory, and the MACD diff is negative and converging, suggesting higher prices in the near term. To confirm the outlook for higher prices, futures need to close back above 6518 and then target 200 DMA at 6669. On the downside, a break below 6250 could set the scene for 6000. Two narrow-bodied candles with long wicks in the last couple of sessions point to market uncertainty; we expect prices to edge sideways in the near term.
