1. Reports
  2. Daily Softs Technical Charts

Non-independent Research Daily Softs Technical Charts

Non-independent Research

Daily Softs Technical Charts

Read disclaimer

NY 2nd Month Sugar Futures

New York sugar futures were well supported yesterday as protracted buying pressure triggered a breach of resistance at 11.20 and closed at 11.30. The indicators are rising and the MACD diff is positive and is starting to diverge once again. The RSI is rising and yesterday’s strong improves the outlook on the upside. The upside trend remains intact but to confirm the upside trend futures need to close above 11.50, this would help confirm the ascending triangle. On the downside, traders have rejected prices above 11.25. Lack of appetite for prices above this level could set the scene for lower prices through trend support to 10.50 in the medium term. However, downside tails suggest lower prices in the near term.

Ldn 2nd Month Sugar Futures 

London sugar futures gained ground yesterday as protracted buying pressure triggered a test of resistance at 354.83 and closed at 354.10. The stochastics and RSI are rising and the MACD diff is positive and diverging once again. Resistance at the 38.2% fib level looks set to break with the 100 DMA at 360.17. In the medium term, if futures close the gap this would prompt futures to regain upside conviction in the long run. On the downside, rejection of prices at the 38.2% fib level, futures could retreat back towards the 50% fib level and 344.95. A break below trend support may trigger losses to 331.40.

NY 2nd Month Coffee Futures 

New York coffee futures held their nerve yesterday as intraday trading saw prices fail above 100 and closed at 99.75. The stochastics are oversold but also starting to show signs of improvement. The MACD diff is negative but hasn’t diverged in recent sessions suggesting waning selling pressure. The recent sell-off and break out of the symmetrical triangle has affirmed downside momentum. The rejection of prices at 100 yesterday may trigger losses back towards 95.80, a break of this level could trigger losses to 93. On the upside, prices need to gain a footing above 100 and then target trend resistance and 108.55.

Ldn 2nd Month Coffee Futures 

London coffee futures gained ground yesterday as appetite for prices at 1173. The market closed at 1198. The stochastics are falling and the MACD lacks conviction as does the RSI. The reaffirmation of support at 1173 could trigger gains through 1200 with the 100 DMA at 1245, helping the outlook on the upside. Conversely, futures have failed above 1200 in recent weeks and this could trigger losses back to 1173.79, a breach of support at this level would trigger losses to 1150.

NY 2nd Month Cocoa Futures

New York cocoa futures buckled yesterday as protracted selling pressure prompted a close on the back foot at 2382. The stochastics are starting to converge and the MACD diff is negative, and the RSI is starting to fall. Yesterday’s bearish candle suggests we could see prices break though the 40 DMA at 2364 to test 2300, we have seen prices supported at this level in recent sessions. On the upside, the 200 DMA at 2493 has held firm in recent weeks and prices need to break above this level in order to regain upside momentum in the long run. If prices hold above previous trend resistance, this could prompt a test of 2493.

Ldn 2nd Month Cocoa Futures 

London cocoa futures sold off sharply yesterday, breaking through 1800 and causing a close at 1794. The stochastics are falling, and the MACD diff is negative. The ADX is starting to rise suggesting a strengthening trend on the downside. The bearish engulfing candle suggests that we could see futures break back towards 1750 in the near term. There is a band of support between 1729-1750 and if this holds firm, a triple bottom will be formed. This remains a key level in the downside. On the upside, futures need to gain a footing back above 1815 and then 1850. However, we anticipate prices to weaken in the near term.

Contents

Disclaimer

This is a marketing communication. The information in this report is provided solely for informational purposes and should not be regarded as a recommendation to buy, sell or otherwise deal in any particular investment. Please be aware that, where any views have been expressed in this report, the author of this report may have had many, varied views over the past 12 months, including contrary views.

A large number of views are being generated at all times and these may change quickly. Any valuations or underlying assumptions made are solely based upon the author’s market knowledge and experience.

Please contact the author should you require a copy of any previous reports for comparative purposes. Furthermore, the information in this report has not been prepared in accordance with legal requirements designed to promote the independence of investment research. All information in this report is obtained from sources believed to be reliable and we make no representation as to its completeness or accuracy.

This report is not subject to any prohibition on dealing ahead of the dissemination of investment research. Accordingly, the information may have been acted upon by us for our own purposes and has not been procured for the exclusive benefit of customers. Sucden Financial believes that the information contained within this report is already in the public domain. Private customers should not invest in these products unless they are satisfied that the products are suitable for them and they have sought professional advice. Please read our full risk warnings and disclaimers.

Sign-up to get the latest Non-independent research

We will email you each time a new report has been published.

You might also be interested in...

Daily Report Base Metals

Daily market commentary on LME aluminium, copper, lead, nickel, tin and zinc.

Daily Report FX

A morning report covering fundamentals and technicals for USD, EUR, GBP, JPY, and CHF.

Weekly Report FX Options

Commentary and analysis covering OTC currency option pricing, volatility and positioning.

FX Monthly Report December 2021

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we focus on China, highlighting the fundamentals for the macroeconomy, as well as any changes to the PBOC in the coming months. The recent cut in the risk reserve requirement suggests monetary loosening. We also outline the movement between the onshore and offshore currency for those looking to arbitrage or hedge their exposure. This analysis gives an indication of the average width of the spread what key levels to look out for.

Quarterly Metals Report – Q4 2021

The global macro picture is starting to present some downside risks in the near term as China's economy is set to slow further and supply-chain bottlenecks continue to cap growth. New orders and new export orders in China are contractionary, and we expect demand in Q4. Order backlogs and lead times for products will continue in Q4, limiting growth, and real consumption is weaker than it looks. Higher costs from shipping, raw materials and energy will take their toll on the consumer, and we expect end-user demand to suffer. The final piece of the jigsaw is the reduction in stimulus from central banks and how that will impact financial markets, bond yields, and the dollar has rallied while stocks corrected, but what will this trend continue?