1. Reports
  2. Daily Softs Technical Charts

Non-independent Research Daily Softs Technical Charts

Non-independent Research

Daily Softs Technical Charts

Read disclaimer

2nd Month NY Sugar

NY sugar futures declined yesterday as selling pressure continued, the market closed below key support at 17.78. The stochastics are falling out of oversold, and the MACD diff is converging. The RSI is declining as well, and the close below support and three sessions on the downside indicate we could see prices test the 40 DMA at 17.41. The long term trend is still on the upside, and if prices hold above the 40 DMA, this will remain the case. In order to confirm the outlook of higher prices, futures need to take out 18.53. We expect futures to hold firm in the near term. 

2nd Month Ldn Sugar

Ldn sugar futures weakened yesterday as selling pressure continued, the market closed at 457.80. The stochastics are falling, the MACD is converging, and the RSI is falling. We expect further selling pressure in the near term towards trend support at 450.80 where the 100 DMA also stands. A subsequent breach of this level would help to confirm the double top at 480 and a rejection of the ascending triangle. On the upside, the market has been supported between 457 and 450 in recent weeks. Futures need to gain a footing above 469.60 in order to set the scene for higher prices in the long run. 

2nd Month NY Coffee 

NY coffee futures gained ground yesterday after prices were well supported at 147.50 and this prompted a close on the front foot at 152.25. The stochastics are falling and the MACD diff is negative suggesting we could see lower prices in the near term. Yesterday's candle suggests an appetite for prices around 147.50, but the market needs to gain a footing above 155.40. On the downside, rejection of prices above the 23.64% fib level could set the scene for lower prices back through 147.50 to 142.74. We expect the market to firm today and maintain a footing above 150. 

2nd Month Ldn Coffee

 Yesterday's activity saw prices test 1720, this level held firm and futures closed at 1707. The stochastics are falling out of overbought as the MACD diff is negative but lacks conviction, this confirms the spinning top candle and the consolidation above 1700. Long term momentum is still on the upside, but the rejection of prices above 1720 could set the scene for lower prices back towards 1643 at the 23.6% fib level. The 40 DMA stands at 1608.8 and will close in and provide support in the near term. If prices hold above the 23.6% fib level the market will remain on the upside. 

2nd Month NY Cocoa

 

Cocoa prices failed above 2300 yesterday, causing a test of support at 2270 but the market closed at 2295. Stochastics are falling and the MACD diff is negative and diverging on the downside helping to confirm the outlook on the downside, and the break below support at 2300 at 2247. Downside tails suggest improving buying pressure below 2300 and this could set the scene for higher prices in the near term towards 2317 before targeting 2355. We expect prices to remain weak in the near term and a reaffirmation of resistance at 2317 could trigger losses to 2247. 

2nd Month Ldn Cocoa 

 

Cocoa prices edged lower yesterday as selling pressure continued, the market closed at 2181.64. The reaffirmation of resistance could trigger losses towards 2147 in the near term but the stochastics are falling further into the oversold territory but the MACD diff is negative territory. A break of support at 2147 would confirm the descending triangle and may prompt further selling pressure to 2100. On the upside, the market needs to break above the 38.2% fib level and trend resistance in order to confirm the outlook of higher prices. 

 

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

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

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?

Weekly Report FX Options

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

FX Monthly Report September 2021

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. The report includes a macroeconomic overview as well as desk comments and technical analysis on key currency pairs.