NY 2nd Month Sugar Futures
NY sugar futures gapped lower after the holiday break, attempting to pierce the critical 15.00 support level but struggling to break lower, resulting in a close at this level. Indicators point to further softness in the near term, with the MACD diff diverging further into negative territory, and %K/%D approaching oversold territory. This suggests prices could weaken further, although the downside is likely to be less sustained. If the 15.00 support level breaks, the next robust support stands at the 40 DMA at 14.79. Slightly increasing volumes could indicate that this support may prompt an orderly rebound back to the 15.00 level. On the upside, the 10 DMA at 15.36 is capping significant upward movement. Yesterday's thin candle with longer upper and lower wicks suggests that downside pressures may be stalling, making the 40 DMA a key level to watch.
Ldn 2nd Month Sugar Futures
Ldn sugar futures gapped lower yesterday, breaking below the 10 DMA level of 441 and 440 to settle just above the 40 DMA at 434.54. Technical indicators point to further downside, with the MACD diff diverging further into negative territory and %K/%D falling, indicating more room for downward pressure. To confirm this momentum, a break below the 40 DMA support could pave the way for a move towards 430 and the 100 DMA at 424.78. On the upside, futures remain capped by 440 and the 10 DMA, limiting potential gains. We expect continued weakness in the near term, but the 100 DMA appears resilient.
NY 2nd Month Coffee Futures
NY coffee edged higher yesterday, but the 10 DMA resistance level of 268 limited gains, with futures settling just above 266.35. Momentum is reversing, as the MACD diff is negative and converging, while %K/%D are turning upward and recovering from oversold territory, suggesting renewed upside appetite. To sustain this, prices need a close above the 10 DMA, with 280 as the next target. On the downside, a rejection above 260 could lead to losses back to the recent lows of 255.65. Buying pressure remains weak and the doji candle highlights market uncertainty. A breach of the 10 DMA is required to suggest further gains; meanwhile, momentum is likely to stay subdued.
Lnd 2nd Month Coffee Futures
Ldn coffee futures gapped lower at the open yesterday but consolidated throughout the day, returning to the critical 10 and 40-day moving average cluster, settling just below at 3377. Technical indicators point to stalling upward momentum, with %K/%D flattening after previous strength and the MACD diff remaining negative and flat, suggesting sideways movement in the near term. Volumes remain healthy, indicating active participation but a lack of clear direction, resulting in a more orderly two-way flow. Technical analysis suggests futures are likely to fluctuate around the 10/40 DMA cluster in the near term, with resistance at 3500 capping significant upside.
NY 2nd Month Cocoa Futures
NY cocoa futures rallied yesterday, with buying pressure pushing the close above the critical 4000 and 10 DMA (4110) levels, settling at 4240. Stochastics are only now catching up, as %K/%D have yet to flip upward to confirm strengthening momentum out of oversold territory. With two key resistance levels breached, there is now ample room for further gains, with the next upside level to watch at 4750—a May high—followed by 5000. A long candle body with short wicks suggests growing conviction for higher prices, while the 40 DMA at 3691 provides robust support for now.
Ldn 2nd Month Cocoa Futures
