NY 2nd Month Sugar Futures
NY sugar futures stabilised on Tuesday, closing at 14.44, after failing to sustain momentum above the mid-14.50s. Price action continues to unfold beneath the declining longer-term DMAs, keeping the broader bias cautious. The stochastics are rising modestly, with %K holding above %D, suggesting short-term stabilisation rather than a decisive reversal. The MACD diff is marginally positive but flat, indicating limited follow-through from recent buying interest. To confirm a near-term recovery, futures need to reclaim the 10 DMA at 14.47, followed by a move back towards 15.00. Failure to hold current levels would refocus attention on support around 14.00, with a break below this zone reopening downside risks. For now, the market appears to be consolidating after the recent sell-off.
Ldn 2nd Month Sugar Futures
London sugar futures edged lower into the close, settling at 420.50, as prices continued to struggle below the 40 and 100 DMA cluster. The stochastics are rising, with %K holding above %D, pointing to waning downside momentum, although the signal remains tentative. The MACD diff is negative but converging, suggesting that selling pressure is easing rather than accelerating. To confirm a more constructive near-term outlook, futures need to close back above the 40 DMA at 418.52 and then test resistance at 434.30. On the downside, a failure to hold above 420 would leave prices vulnerable to a renewed test of the 403.40 low. Momentum remains fragile, with the broader trend still biased lower.
NY 2nd Month Coffee Futures
NY coffee futures extended losses on Tuesday, closing at 352.10, as prices slipped back below the 10 and 40 DMA levels. The stochastics remain weak, with %K below %D and trending lower, indicating continued downside momentum. The MACD diff is negative and diverging, confirming that selling pressure is building rather than stabilising. To confirm the bearish near-term outlook, futures need to sustain a break below 350, which could expose the market to a deeper retracement towards 315. On the upside, prices would need to reclaim 369.30 and then the 40 DMA at 377.85 to signal a shift in momentum. Until then, rallies are likely to be sold into.
Ldn 2nd Month Coffee Futures
London coffee futures weakened further on Tuesday, closing at 3832, with prices slipping below near-term moving-average support. The stochastics are firmly oversold, with %K deeply below %D, signalling stretched downside conditions but not yet a clear reversal. The MACD diff remains negative and diverging, highlighting persistent selling pressure. To confirm further downside, futures need to take out support at 3800, which would leave the market exposed towards the 3500 region. On the upside, any recovery would need to regain the 10 DMA at 4082 and then the 40 DMA at 4401 to materially improve the technical outlook. Momentum remains decisively negative.
NY 2nd Month Cocoa Futures
NY cocoa futures extended their recovery on Tuesday, closing higher at 6026, as prices continued to rebound from the November low. The stochastics are rising, with %K comfortably above %D, signalling improving upside momentum. The MACD diff is positive and diverging, confirming that buying pressure is strengthening. To confirm the recovery, futures need to break above resistance at 6210, which would open the way towards 6720. On the downside, support remains firm around 5800, and a close below this level would be required to undermine the improving short-term structure. For now, momentum favours further consolidation to the upside.
Ldn 2nd Month Cocoa Futures
London cocoa futures edged higher on Tuesday, settling at 4543, extending the rebound from the October lows. The stochastics are rising strongly, with %K/%D diverging on the upside out of oversold territory, indicating growing upside momentum. The MACD diff is positive and diverging, reinforcing the constructive near-term signal. To confirm further gains, futures need to reclaim 4698, which would bring 5359 back into view. On the downside, a failure to hold above 4300 would suggest that the recovery is losing traction. Despite the improving indicators, thin candle bodies highlight ongoing consolidation rather than a decisive breakout.
