NY 2nd Month Sugar Futures
NY sugar prices declined yesterday after struggling above the resistance level of 16.64. The market closed at 16.50. Stochastic indicators continue to strengthen, and the MACD differential is on the verge of converging to the upside, suggesting we may see higher prices in the near term. A break above the 10 DMA at 16.59 and the 40 DMA at 16.95 could pave the way for a test of resistance at 17.11, the 100 DMA. On the downside, support at 16.00 continues to hold; however, a break below this level could lead to significant declines towards new lows. We expect prices to edge higher in the near term, possibly retesting the 10 DMA today.
Ldn 2nd Month Sugar Futures
Ldn sugar futures weakened yesterday as prices struggled against resistance at the 10 and 50 DMAs, both at around 468.50, and closed at 462.20. Stochastic indicators are declining and are approaching oversold territory. The MACD differential remains negative, indicating continued weakness in the near term. A break below 460 could open the door for lower prices, potentially targeting a recent low of 447. Conversely, maintaining support above these levels could indicate higher prices, with a close above the short-term moving averages setting the stage for an upward move towards the 100 DMA at 473.22. The candle body from yesterday suggests a lack of appetite for higher prices, which could trigger a retest of support at 460 today. Overall, indicators are pointing to a further decline in prices in the near term.
NY 2nd Month Coffee Futures
NY coffee futures held steady as prices struggled to break the support level of 381.40 in recent sessions. Futures settled at 386.10. The indicators suggest continued sideways movement in the near term, with %K/%D elevated but flat, and the MACD differential remaining negative. Volumes have decreased following a strong upward movement in August, indicating the market may be running out of steam in either direction. To confirm stability, resistance at 383.01 must hold while support at 381.40 remains intact. We expect futures to stay elevated but flat in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged higher yesterday, managing to close above the 10 DMA resistance level at 4521. The indicators suggest a potential for higher prices in the near term, as stochastics are rising out of oversold territory and about to send a strong buy signal, while the MACD differential is negative but converging upwards. We expect futures to continue climbing towards 4664, with the 5000 level acting as a strong upside barrier. On the downside, if futures fail to hold at 4338, a breach below the 50 DMA at 4207 could lead to a retest of long-term support at 4000. Overall, we expect futures to firm in the near term, though a strong signal above 4664 is needed to indicate a potential long-term trend change to the upside.
NY 2nd Month Cocoa Futures
NY cocoa futures edged higher yesterday, closing at 7528. The %K/%D indicators have converged on the upside and are now rising, while the MACD differential remains negative but is converging, suggesting increasing appetite for higher prices. Futures need to break above the 10 DMA level at 7523 to trigger further momentum. A move above this level toward the 40 DMA at 7731 would confirm strong bullish momentum. Conversely, a decline below 7336 could lead to testing support at 7000. A long-legged doji candle indicates indecision in market direction. Additionally, the 10 DMA has just crossed below the 40 DMA, reinforcing resistance at current levels. We anticipate prices will edge slightly higher before encountering resistance at the 40 DMA, potentially leading to a retreat.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures gained moderate ground yesterday, driven by buying pressure that saw a test of the 50 DMA at 5334. The market closed at 5196. The stochastics are rising, and the MACD differential shows convergence to the upside, indicating moderate bullish momentum in the near term. Prices have held above 5000 in recent sessions, but a drop below this level could trigger declines towards 4495 and new lows. On the upside, a breach above 5334 would reactivate resistance at 5359, confirming an inverse hammer formation. For the trend to be confirmed, futures need to exceed this resistance level. We expect prices to edge higher today.
