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 prices declined yesterday after prices rejected resistance at 12.35. The market closed at 12.04. The stochastics are starting to weaken, the MACD diff is positive and converging. The RSI, sell signal from the stochastics and MACD diff converging suggests we could see lower prices in the near term. A break below the 100 DMA and trend support could set the scene for a test of support at 11.05. The reaffirmation of support around 11.50 or 11.25 would improve the outlook in the long run. Conversely, a breach of this support level would confirm a change in trend. On the upside, if support at the 100 DMA holds firm could set the scene for higher prices through 12.35. Secondary resistance stands at 12.60 before the gap at 12.93, which would help to confirm the ascending triangle. We expect prices to edge lower in the near term.

Ldn 2nd Month Sugar Futures 

Ldn sugar prices sold off sharply yesterday as protracted selling pressure caused a test of trend support around 360. The market closed at 360.60. The stochastics are falling and have given a sell signal, and the MACD diff is negative and starting to diverge. A break below the 100 DMA would set the scene for lower prices towards the 40 DMA. The psychological level, in the long run, is 320. On the upside, if support at the 100 DMA and the trend support holds firm, we could see futures break back above 370 towards the recent high at 380. The market has been apprehensive in recent weeks. We anticipate futures we weaken in the near term, helping to confirm the full candle and weakening indicators.

NY 2nd Month Coffee Futures 

NY coffee futures weakened yesterday as futures failed into trend resistance and closed at 96.75. The stochastics are starting to improve and have emerged from oversold. The MACD diff is positive but lacks conviction, the descending triangle is coming to fruition. A break above trend resistance and 100 would confirm the rejection of the descending triangle and bullish engulfing candle. This may pave the way for higher prices to 104 with the tertiary level at 108.90. Conversely, the reaffirmation of resistance yesterday suggests lower prices and a close below 95.80 with higher volumes could set the scene for higher prices towards 93 and 90. Yesterday’s full candle could trigger a break of support today. The indicators are starting to improve but momentum remains on the downside.

Ldn 2nd Month Coffee Futures 

Ldn coffee futures edged lower yesterday as prices were well supported at the upper trend channel, and the market closed at 1164. The stochastics are falling and the MACD diff is negative and diverging outlining the recent decline in prices after the rejection of prices at the 100% fib level. The reaffirmation of support yesterday could trigger gains towards the 40 DMA and previous trend support. In the long run, resistance at 1267 needs to be broken to regain upside conviction. Conversely, a breach of support at the upper trend channel may set the scene for lower prices to 1116. If futures take out of this level, this would reaffirm the trend on the downside. We expect prices to weaken in the near term.

NY 2nd Month Cocoa Futures 

NY cocoa futures found support yesterday around 2200. The market held firm and closed at 2270. The stochastics are falling towards oversold territory, the MACD diff is negative and diverging. The ADX and DMI are rising suggesting lower prices on the downside, futures need to break below 2200 towards 2165 and then 2100. Conversely, the recovery yesterday and hammer candle suggest we could see higher prices in the near term. A break above previous trend resistance could set the scene for higher prices towards 2366 before the long term target at 2499. We expect futures to remain on the back foot in the near term despite yesterday’s strength.

Ldn 2nd Month Cocoa Futures 

Ldn cocoa futures gained ground yesterday, reversing the previous day's activity. Support below 1684 triggered a close at 1699. The stochastics are rising but remain in oversold territory. The ADX and DMI are rising outlining the trend on the downside. The MACD diff is negative and converging on the downside suggesting higher prices. If prices can take our trend resistance, this would help to confirm the rejection of the descending triangle. On the downside, a rejection of prices above 1700 could set the scene for lower prices towards 1650. 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 FX

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

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.

Weekly Report FX Options

Our FX Options Report contains commentary and analysis covering OTC currency option pricing, volatility and positioning. This week’s focus is on USDCNH and the currency's trajectory as Chinese economies continues to show weakness despite stimulus attempts from the government and the PBOC.

FX Monthly Report August 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the EUR and the pressure the ECB is under to continue tightening monetary policy as USD continues to strengthen against major currencies. Economic data is weakening and inflation remains a concern. 

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.