NY 2nd Month Sugar Futures
NY sugar futures edged lower on Tuesday, closing at 14.82, down 0.04 on the session as prices paused after the strong recovery seen in late June. Despite the softer close, futures continue to trade above the 10 DMA at 14.28, the 40 DMA at 14.82 and the 100 DMA at 14.56, suggesting that the broader recovery structure remains intact. The small red candle points to a loss of near-term momentum rather than a reversal, with prices continuing to hold comfortably above the key support at 14.30.
The stochastics are rising, with %K at 71.40 well above %D at 51.78, indicating strengthening upside momentum. The MACD diff remains positive at 0.076 and is widening, signalling continued buying pressure despite the marginally weaker close.
To confirm a continuation higher, futures need to hold above the 40 DMA and break through the psychological 15.00 level, which would open the way towards 15.50. On the downside, a move back below the 100 DMA at 14.56 would weaken the recovery structure and expose support at 14.30. For now, the indicators remain constructive, but futures need to clear nearby resistance to reinforce the near-term bullish outlook.
Ldn 2nd Month Sugar Futures
Ldn sugar futures plunged on Tuesday, closing at 467.20, down 17.80 on the session after failing to build on the recent move to fresh highs. The large red candle highlights aggressive profit-taking and a sharp rejection from levels above 480. Despite the decline, futures remain well above the 10 DMA at 455.82, the 40 DMA at 443.24 and the 100 DMA at 431.74, confirming that the broader uptrend remains firmly intact.
The stochastics are turning lower from overbought territory, with %K at 85.89 above %D at 77.91, suggesting that upside momentum is beginning to cool after the recent rally. The MACD diff remains positive at 4.21 and continues to widen, indicating that the underlying trend remains supportive despite the sharp daily decline.
To confirm a deeper correction, futures need to break below the 10 DMA at 455.82, which would expose the 40 DMA at 443.24. On the upside, futures need to recover and close back above 480 to confirm that buying interest has returned and reopen the path towards 500. For now, Tuesday's sell-off appears to be a correction within a strong uptrend, but the size of the decline suggests that upside momentum is beginning to moderate.
NY 2nd Month Coffee Futures
NY coffee futures plunged on Tuesday, closing at 317.60, down 32.35 on the session as a large red candle erased a significant portion of the recent rally. Despite the sharp decline, futures remain above the 10 DMA at 295.65, the 40 DMA at 269.90 and the 100 DMA at 282.32, indicating that the broader recovery structure remains intact for now. The rejection from the recent highs near 350 suggests aggressive profit-taking emerged after the strong advance seen through late June, with the 312.25 level now becoming the key support area to watch.
The stochastics are turning lower from overbought territory, with %K at 75.33 below %D at 78.95, signalling that upside momentum is fading. However, the MACD diff remains positive at 7.22, suggesting that while momentum has cooled sharply, the broader bullish trend has not yet reversed. The large bearish candle following a strong rally highlights growing uncertainty about whether futures can sustain the recent breakout.
To confirm a deeper correction, futures need to break below support at 312.25 and then test the 10 DMA at 295.65. A move below these levels would expose the 100 DMA at 282.32. On the upside, futures need to reclaim the recent high around 350 in order to revive bullish momentum and reopen the path towards 375. For now, the sharp sell-off signals a loss of momentum, but futures remain above all major moving averages and key support levels.
Lnd 2nd Month Coffee Futures
Ldn coffee futures also fell sharply on Tuesday, closing at 3872, down 172 on the session as prices retreated after failing to extend the recent rally. The red candle signals strong selling pressure on the day, although futures continue to trade above the 10 DMA at 3730, the 40 DMA at 3493 and the 100 DMA at 3509. As a result, the broader recovery remains intact despite the setback.
The stochastics are easing, with %K at 69.16 below %D at 71.13, indicating that upside momentum is moderating following the recent advance. The MACD diff remains firmly positive at 31.99, suggesting that underlying buying pressure is still present despite the sharp decline. The inability to hold above 4000 highlights the emergence of selling interest at higher levels.
To confirm further downside, futures need to break below the 10 DMA at 3730, which would expose the 40 DMA at 3493 and the 100 DMA at 3509. On the upside, futures need to regain the 4000 level and then challenge the recent highs to confirm a continuation of the recovery. For now, Tuesday's decline appears corrective following a strong rally, but momentum indicators suggest the market remains constructive while prices hold above key moving averages.
NY 2nd Month Cocoa Futures
NY cocoa futures edged higher on Tuesday, closing at 5759, up 1.14% on the session as prices continued to build on the recent breakout above the key resistance level at 5220. While the daily gain was relatively modest compared with the strong rally seen in late June, futures remain firmly above the 10 DMA at 5159, the 40 DMA at 4369 and the 200 DMA at 4755, confirming that the broader recovery remains intact. The market is now trading at its highest level since late 2024, although the small candle body suggests a degree of consolidation following the recent advance.
The stochastics are rising, with %K at 86.68 above %D at 83.49, signalling strong upside momentum, although both indicators remain deep in overbought territory. The MACD diff is positive at 105.47 and widening, highlighting continued buying pressure and reinforcing the strength of the current trend.
To confirm further upside, futures need to hold above the breakout level at 5220 and then challenge resistance around 6000. A sustained move above this level would reinforce the bullish outlook and open the way towards higher psychological targets. On the downside, a break back below 5220 would signal that momentum is fading, with the 200 DMA at 4755 providing the next major support. While momentum indicators are stretched, the trend remains firmly constructive while futures continue to hold above the major moving averages.
Ldn 2nd Month Cocoa Futures
