Softs Technical Charts

NY 2nd Month Sugar Futures

NY sugar futures held their nerve on Friday as intraday trading saw prices close at 19.05. Futures found support around 19.00 and remained above the 10 DMA at 18.91, following the recent rejection from the August high around 19.70. The 40 DMA at 17.12 and the 100 DMA at 15.72 continue to rise well below the market, maintaining the broader positive trend. However, the recent failure to extend gains towards 20.00 suggests that buying appetite has weakened at the upper end of the range.

The stochastics are falling, with %K/%D diverging on the downside at 61.85/73.03, signalling fading buying momentum. The MACD diff has converged on the downside and turned marginally negative at -0.0146, with the MACD line at 0.7366 below the signal line at 0.7512, further highlighting the loss of upside momentum.

To confirm the outlook for lower prices, futures need to break below the support provided by 19.00 and the 10 DMA at 18.91. A close below these levels could set the scene for a test of 18.50, followed by the recent support area around 18.20. A more substantial break below 18.00 would strengthen the bearish momentum and bring the 40 DMA at 17.12 into focus. On the upside, the reaffirmation of support at current levels could see futures recover towards 19.50. A break above the recent high around 19.70 would be needed to confirm renewed appetite for higher prices and target the psychological 20.00 level.

Ldn 2nd Month Sugar Futures

Ldn sugar futures edged lower on Friday as selling pressure saw prices close at 525.40. Futures settled below the 10 DMA at 527.40 after struggling to sustain gains above 530, while the recent rejection from the 535–540 area has reinforced resistance at the upper end of the range. Nevertheless, the 40 DMA at 493.36 and the 100 DMA at 462.14 continue to rise below current prices, preserving the broader constructive structure.

The stochastics are falling, with %K/%D at 43.08/47.97 and %K remaining below %D, suggesting further appetite for lower prices. The MACD diff is negative and diverging at -2.0169, with the MACD line at 12.589 below the signal line at 14.6059, confirming growing selling pressure.

To confirm the outlook for lower prices, futures need to break below the immediate support at 520. A close below this level could set the scene for a move towards 510 and then the psychological support at 500. The 40 DMA at 493.36 would provide a more robust support level below this area, and a break beneath it would signal a more significant deterioration in the medium-term structure. On the upside, futures need to regain the 10 DMA at 527.40 and take out resistance around 535–540. A sustained close above 540 could trigger a renewed test of the August high around 555 and confirm an extension of the broader bullish trend.

NY 2nd Month Coffee Futures

NY coffee futures edged lower on Friday as selling pressure pushed prices below 300 to close at 295.60. The market remains below the 10 DMA at 313.18 and the 40 DMA at 315.02, with the proximity of these averages creating a robust resistance area around 313–315. Futures are now testing the 100 DMA at 292.90, which remains the key support level protecting the broader recovery from the June low.

The stochastics are deeply oversold, although %K has crossed above %D at 10.47/8.65, suggesting that bearish momentum may be losing strength and that some buying interest could emerge at current levels. However, the MACD diff is negative and diverging at -4.08, with the MACD line at -2.93 below the signal line at 1.15, highlighting continued selling pressure.

To confirm the outlook for lower prices, futures need to break below the 100 DMA at 292.90. A sustained close below this level could set the scene for a test of 280, before the previous support area around 270 comes into focus. Conversely, the reaffirmation of support at the 100 DMA could trigger a recovery above 300 and towards the 10 and 40 DMAs at 313.18 and 315.02, respectively. Futures would need to close above this resistance area to ease the current bearish pressure and confirm renewed appetite for higher prices towards 325.

Lnd 2nd Month Coffee Futures

Ldn coffee futures edged higher on Friday as some buying interest at lower levels saw prices close at 3430. Despite the modest recovery, futures remain below the 10 DMA at 3548, the 100 DMA at 3578 and the 40 DMA at 3725, maintaining the bearish moving-average structure. The recent break below the 3500 area has also weakened the technical outlook, with prices trading around their lowest levels since the recovery began in June.

The stochastics remain in oversold territory, although %K has crossed above %D at 18.43/10.56, suggesting that the recent selling momentum is beginning to stabilise. However, the MACD diff is negative and diverging at -32.03, with the MACD line at -85.12 below the signal line at -53.09, confirming persistent selling pressure.

To confirm the outlook for lower prices, futures need to break below the recent support around 3400. A close below this level could set the scene for a move towards 3300, before the longer-term support around 3200 comes into focus. On the upside, the confirmation of support around current levels could trigger a recovery towards 3500 and the 10 DMA at 3548. Futures would then need to break above the 100 DMA at 3578 to ease the immediate bearish pressure. A close above this level could encourage a test of 3600, although the 40 DMA at 3725 would remain a more substantial obstacle to a sustained recovery.

NY 2nd Month Cocoa Futures

Ldn 2nd Month Cocoa Futures