Ldn 2nd Month Sugar Futures
Ldn sugar futures edged higher on Friday, closing at 476.20, up 1.20 on the session as prices extended the recent breakout and continued to trade at their highest levels in several months. The market remains comfortably above the 10 DMA at 455.82, the 40 DMA at 443.24 and the 100 DMA at 431.74, confirming a firmly constructive technical structure. The recent rally has also carried futures well above the previous resistance area around 460, signalling strong buying interest and sustained upside momentum.
The stochastics are rising, with %K at 85.89 above %D at 77.91, indicating strong momentum, although both indicators are now firmly in overbought territory. The MACD diff remains positive at 4.21 and is widening, confirming that buying pressure continues to strengthen. At the same time, increasing volume during the rally reinforces the positive tone and suggests the move is attracting fresh participation.
To confirm a continuation higher, futures need to hold above the recent breakout zone around 460 and then challenge resistance near 480. A sustained move above this level would open the way towards the psychological 500 mark. On the downside, the 10 DMA at 455.82 is now the first key support level, with the 40 DMA at 443.24 providing stronger support beneath. While overbought indicators suggest the pace of the rally may begin to slow, the trend remains firmly to the upside while futures continue to hold above the major moving averages.
Lnd 2nd Month Coffee Futures
Ldn coffee futures edged lower on Friday, closing at 3716, down 67 on the session as prices pulled back following the strong rally seen in recent weeks. Despite the decline, futures remain above the 10 DMA at 3648, the 40 DMA at 3468 and the 100 DMA at 3503, indicating that the broader recovery structure remains firmly intact. The red candle suggests some profit-taking at higher levels rather than a reversal of trend, with prices continuing to hold comfortably above key support levels.
The stochastics are easing from elevated levels, with %K at 66.72 below %D at 71.03, signalling that upside momentum has moderated after becoming stretched. However, the indicators remain in positive territory and do not yet point to a significant deterioration in sentiment. The MACD diff remains positive at 18.19, confirming that buying pressure continues to outweigh selling pressure despite the softer close.
To confirm a deeper pullback, futures need to break below the 10 DMA at 3648, which would expose the 40 DMA at 3468. A move below this level would signal that the recent recovery is losing momentum. On the upside, futures need to reclaim the recent highs around 3800, which would open the way towards the psychological 4000 level. For now, Friday's decline appears corrective within a broader recovery trend, with prices continuing to hold above all major moving averages and momentum indicators remaining broadly supportive.
Ldn 2nd Month Cocoa Futures
