NY 2nd Month Sugar Futures
NY sugar futures softened during the day after prices opened above the previous day's close, prompting a close on the back foot at 20.13. The stochastics are rising, and diverging, with %K/%D leaving the oversold territory, and the MACD diff is converging on the upside, outlining the strength in the market. Selling pressure has been moderate; yesterday's close above the key resistance level of 10 DMA suggests increased appetite for higher prices. If prices can gain a footing above the trend resistance level at 20.62, the bulls could then target 2090 in order to regain upside conviction. Alternatively, a break back below 10 DMA at 20.03 could set the scene for lower prices at 40 DMA at 19.77, which is seen providing robust support from the downside. We anticipate prices to remain on the front foot in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures failed above 521.20 yesterday as prices closed at 515.30. The stochastics are rising, but %K/%D is seen converging near the overbought territory. The MACD is negative and converging, pointing to higher prices in the near term before a possible change of trend. The rejection of higher prices may prompt a break back towards support at 10 DMA at 502.98, a subsequent breach of this level could trigger losses towards 500. On the upside, a break of 521.20 may prompt futures to retest 530. Long upper and lower wicks point to uncertainty about the direction; however, the weakness during the day prevailed, confirming the double top formation. We expect prices to soften in the near term.
NY 2nd Month Coffee Futures
NY coffee strengthened yesterday, as moderate buying pressure triggered a close on the front foot at 188.15. The stochastics are falling, with %K/%D see converging on the upside near the oversold. The MACD diff is negative and converging. A narrow bullish candle body with a long lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 10 DMA at 189.48, but prices struggled above that level. This would confirm the trend for rising prices, up to the 23.6% fib level 191.22. On the downside, a breach of support at 180 would strengthen the bearish momentum. This could also trigger losses towards the trend support. Indicators point to higher prices, but with prices failing above the trend resistance, futures are capped on the upside.
Ldn 2nd Month Coffee Futures
Lnd coffee prices gained ground yesterday appetite for prices above 2100, triggering a close at 2107. The stochastics favour the upside, with the %K stochastic about to cross about %K, suggesting we could see prices improve in the near term. The MACD diff is negative and converging, pointing to an improved outlook. The RSI is rising, and yesterday's candle suggests we could see prices challenge 2130 in the near term. In the medium term, futures need to hold above 2150. On the downside, a break below the 10 DMA support level at 2072 could trigger losses back to 2034 and 2000. Three white soldiers formation in the previous sessions confirms the outlook or higher prices, however, narrow candle bodies point to a softer appetite above the current resistance level. We anticipate prices to improve today as moderate buying pressure continues.
NY 2nd Month Cocoa Futures
Prices weakened yesterday, despite breaking above the resistance of 2675, as moderate selling pressure triggered a close at 2680. The stochastics are rising, and the MACD is negative and converging, suggesting growing buying pressure. Dips in the market have been well bid in the last couple of weeks, but in order to confirm the outlook for higher prices, futures need to break above the current resistance at 2700 and then the highs of 2717. Conversely, a break below 10 DMA at the 2657 support line could set the scene for a test of 2600. With the candle crossing above the resistance level, we could see a potential change in trend, however, the prices softened during the day, suggesting we could see a correction in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa strengthened yesterday, as intraday buying pressure triggered a close below near term resistance at 2491. The stochastics are falling, with %K/%D is diverging on the downside. The MACD diff is negative but struggled to point out an outlook. A narrow bullish candle body with a long lower wick suggests marginal appetite above 10 DMA at 2495; this could set the scene for higher prices to break above the trend resistance 2509, but prices struggled above that level. On the downside, a breach of support at 2450 would strengthen the bearish momentum. This could also trigger losses towards 2431. Indicators paint a mixed picture, and with candles struggling to break above the current resistance level, the futures are capped on the upside.