NY 2nd Month Sugar Futures
NY sugar futures held their nerve on Friday as intraday trading saw them test appetite at 19.44. This level held firm, and the front month future closed at 19.23. The stochastics are rising yet converging, with %K trading out of the oversold, and the MACD diff is positive and converging, signalling waning buying pressures. To confirm the outlook for higher prices, futures need to break above the resistance at 19.44, which could set the scene to take out 19.50. On the downside, the market needs to take out support at 19.00 and then support at 10 DMA at 18.80. The 10 DMA has been a robust support level, and a break below would confirm the stronger momentum on the downside.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged lower on Friday as prices closed at 477.70. The indicators begin to favour the downside, as %K/%D is seen converging on the downside, confirming growing selling pressures. The MACD is positive and converging. A break below the 10 DMA at 470.43 would bring into play 470. Prices have been relatively well supported below 480, and in order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above 478.80 and then target the 482.60 in the near term. The doji candle points to market uncertainty above the robust resistance at 478.80, and we could see prices edge lower in the near term.
NY 2nd Month Coffee Futures
NY coffee futures softened on Friday after finding support above 176.50. The market closed at 179.05. The stochastics continue to soften, with %K in the oversold territory, and the MACD diff is negative and diverging, suggesting we could see lower prices in the near term through support 174.50. A break below this level would bring into play 170, which could set the scene for support at 38.2% fib level at 168.05 in the longer term. On the upside, futures need to gain back above 181.65 – the previous week’s high, in order to confirm upside momentum. The reaffirmation of support there could trigger gains towards the level at 23.6% fib level at 185; this could strengthen the trend in the long run on the upside. Longer lower wick, where most of the trading took place in the upper ranges, points to strengthening appetite, however, indicators point to lower prices in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures softened on Friday after piercing the support level of 1763. The market closed at 1754. The stochastics are falling, with %K/%D just diverging on the downside, and the MACD diff is negative and diverging. The reaffirmation of support at 1800 could set the scene for higher prices back to test the 10 DMA level at 1821. On the downside, futures need to break below the support of 40 DMA at 1740 in order to confirm the bearish trend. Indeed, the 40 DMA support level has been edging higher, providing support for prices on the downside. The market needs to break below the 40 DMA in the immediate term to confirm the outlook for lower prices.
NY 2nd Month Cocoa Futures
NY cocoa strengthened on Friday, as protracted buying pressure triggered a close on the front foot at 2474. The stochastics are overbought, with %K/%D is seen diverging on the upside. The MACD diff is positive and converging. A bullish candle with a longer lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the trend resistance at 2480. This would confirm the trend for rising prices, up to 2500. On the downside, a breach of support at 10 DMA at 2457 would strengthen the bearish momentum. This could also trigger losses towards 2434. Indicators are painting a mixed picture, and if futures break above the trend resistance, we would expect to gain positive momentum in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures consolidated on Friday as protracted buying pressure prompted a close above 2350 at 2366. The stochastics remain overbought but struggle to point out an outlook, and the MACD diff is positive and converging. Another bullish candle could set the scene for higher prices, a break of previous resistance at 2380 could trigger gains towards 2400. The 10 DMA at 2352 is providing robust support, and break below this level could cause futures to test 2320 and then 2300. We expect prices to be moderately positive today, capped by near term resistance.