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 

NY sugar futures gained ground yesterday as futures were well supported at 11.50 to recover and close at 11.80. The stochastics are rising and the MACD diff is also rising to suggest higher prices in the near term. The ADX and DMI is rising as well and yesterday’s hammer and the three white soldiers need to be confirmed.  We anticipate prices to test 12 in the near term with the 100 DMA at 12.12, a subsequent breach of the 100 DMA could trigger gains through to 12.50. Apprehension amongst traders as prices approach 12 could trigger losses to 11.30. The market would need to take out this level in order to regain downside conviction towards 10.62 in the medium term.

Ldn 2nd Month Sugar Futures 

London sugar futures firmed yesterday as protracted buying pressure caused a break robust resistance at the 100 DMA to close at 364. The indicators remain on the upside as the stochastics are overbought but the MACD diff is diverging in positive territory suggesting higher prices. The gap is yet to be filled but a break above the 23.6% fib level could set the scene for higher prices to 380.  Recent full candles on the upside affirm sentiment and we expect prices to continue higher today. However, lack of appetite above the 23.6% fib level could set the scene for a correction on the downside to 354.83.


NY 2nd Month Coffee Futures 

NY coffee futures edged lower yesterday as futures were well supported below 98.  The market closed at 99.70. The stochastics are starting to improve but remain in oversold territory. The MACD diff is negative but fails to diverge further on the downside. The downside tail suggests an appetite for higher prices to near term trend resistance. Secondary support stands at 108.55, this level has held firm in recent weeks but futures need to take out this level in order to confirm the outlook of higher prices. Lack of appetite for prices above 100 has kept momentum on the downside and we could see a repeat of this in the near term.  Lack of appetite above 100 would keep the descending triangle intact and may trigger losses through 95.80.

Ldn 2nd Month Coffee Futures 

London coffee futures have softened in the last few sessions, however, prices closed at 1210 above the 123.6% fib level.  The indicators lack conviction but if futures break back below the 123.6% fib level, secondary support stands at 1173. The more psychological level is  1150 and if prices break below this level in the medium term this would regain downside conviction. On the upside, if futures hold above the 123.6% fib level the bulls may target the 100 DMA at 1243. This level has held firm repeatedly and if the market holds above the 100 DMA this would improve the outlook in the longer run.

NY 2nd Month Cocoa Futures 

NY cocoa futures failed above resistance at 2400 yesterday triggering a close at 2377. The stochastics lack conviction as does the MACD diff and DMI. The upside tails suggest lack of appetite for prices above 2400 and after the double top at the 200 DMA, a retracement back through 2300 to confirm the pattern. Support at previous trend resistance has held firm recently and the reaffirmation of support at this level could set the scene for higher prices to the 200 DMA. This level needs to be taken out in order to reaffirm upside momentum in the long run and the break out of the symmetrical triangle.

Ldn 2nd Month Cocoa Futures 

Ldn cocoa futures failed above the lower trend channel trend line and closed at 1787. The indicators favour the downside as the stochastics fall and the MACD diff is negative suggesting lower prices. The reaffirmation of resistance yesterday and the rejection of higher prices suggests we could see futures soften in the near term towards 1750, helping to confirm the bearish engulfing candle and the inverted hammer candle. On the upside, prices need to hold above the lower trend channel trend line and then target the 40 DMA in the near term.



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

Our daily commentary, covering market news and closing prices of LME aluminium, copper, lead, nickel, tin, zinc, iron ore, steel, and precious metals.

Daily Report FX

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

Weekly Report FX Options

Our FX Options Report contains commentary and analysis covering OTC currency option pricing, volatility and positioning. 

Quarterly Metals Report – Q3 2022

Our analysts provide an in-depth analysis of the metals market and current macroeconomic conditions. The environment has weakened significantly as growth fears rise amid persistent high inflation. Central banks are data-dependent, which could mean they slow rate hikes as growth starts to slow. This has meant a downside to the US 10yr yield, but also we see a downside to rate hikes in Q4. Europe will likely enter a recession before the US and take longer to recover, but material availability is significantly lower, shown by low inventories.

FX Monthly Report June 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the JPY and the pressure the BOJ is under to change their monetary policy as JPY continues to weaken against major currencies. Economic data is weakening and inflation is less of a problem in Japan, but yields continue to test the cap.