2nd Month NY Sugar Futures
NY Sugar futures sold off yesterday, prices closed at 10.50. The MACD diff is positive once again but it lacks conviction. The stochastics are also starting to improve but the recent selling pressure suggests that we could see futures take out support at 10.41. Appetite for prices at this level would form a double bottom and could set the scene higher prices towards 11.50. Key resistance stands at trend resistance at 11.88. We expect prices to remain on the backfoot in the near term due to the rejection of higher prices and the full candles on the downside.
2nd Month London Sugar Futures
London sugar futures buckled yesterday, lack of appetite for prices above 335.07 prompting a close at 330.90. The MACD diff is positive but is starting to lose traction, the stochastics are also falling after failing to push into positive territory. The break of support at 335 could set the scene for a re-test of 320. A subsequent break of 320 would confirm the rejection of prices at 344.95 and the descending triangle. On the upside, prices need to take out the 50% fib retracement level at 344.95.
2nd Month NY Coffee Futures
NY futures reaffirmed support at the 100 DMA yesterday. The market closed at 120.35 after failing at 121.50. The stochastics have fallen out of overbought but the reaffirmation of support at the 100 DMA could set the scene for higher prices through the 38.2% fib level at 121.50 before testing targeting 130. This would help confirm the hammer candle yesterday. On the downside, a break of support at 116.20 would set the scene for lower prices to 110.
2nd Month London Coffee Futures
London futures weakened yesterday as selling pressure prompted a test of support at 1200. The market closed at 1222. The stochastics are falling and the MACD diff is starting to weaken. Appetite for prices below trend support and at 1200 could set the soon for prices to test the 40 DMA at 1271, prices have failed above this level. The reaffirmation of trend support would help confirm the outlook of higher prices towards 1300. On the downside, prices need to close below 1200 in order to continue the downtrend.
2nd Month NY Cocoa Futures
NY futures edged lower yesterday as prices traded a narrow range. The market closed at 2259. The stochastics trying to emerge from oversold but have started to converge once again. The MACD diff has crossed higher, the market needs to take out resistance at 2300 before targeting 2357. In the longer run, futures need to test 2509. On the downside, support at 2200 needs to be broken in order to confirm the outlook of lower prices with secondary support at 2165.
2nd Month London Cocoa Futures
London futures, edged lower yesterday after prices failed at the lower trend channel prompting a close at 1755. The stochastics are falling further into oversold territory, the MACD diff is also negative and diverging on the downside. The inverted hammer suggests lack of appetite for higher prices. Selling pressure could set the scene for a test of 1700. On the upside, prices need to break resistance at 1857 and then 1900.
