1. Reports
  2. Daily Softs Technical Charts

Non-independent Research Daily Softs Technical Charts

Non-independent Research

Daily Softs Technical Charts

Read disclaimer

NY Sugar 2nd Month Futures 

NY futures buckled on Friday as intraday trading saw prices resistance at 19.44, prompting a break below the 100 DMA. The stochastics are improving but the rejection of resistance could trigger softness in the indicators. However, the MACD diff is now positive but prices need to take out resistance at 19.44 and the 40DMA in order to regain upside momentum. Conversely, Friday's selling pressure and close below the 100 DMA could trigger losses back towards 18.64, with secondary support at 18.31. Even though the indicators are trending higher, Friday's activity was weaker and this could trigger softness in the near term. 

LDN Sugar 2nd Month Futures 

LDN Sugar futures sold off on Friday as selling pressure triggered a close below 500 at 498.50. The stochastics are trending higher but have weakened since Friday. The MACD lacks conviction but is negative, Friday's selling pressure could trigger losses back towards 493.90, a breach of this level could set the scene for a test of the 100 DMA at 485.65 in the medium term. On the upside, there is a band of support between 493 and 500, and appetite for prices at this level could trigger gains back through the 40DMA at 505.64. In the longer run, prices need to take out 525 to indicate a continuation of the trend. 

 

NY Coffee 2nd Month Futures  

NY coffee futures gained ground on Friday as prices were supported at trend support, triggering a close at 206.65. The stochastics are trending lower but we could see a buy signal on the horizon as the stochastics converge. The MACD diff is negative but prices have been bid at trend support, but futures need to take out near term resistance at 209.65. Secondary resistance stands at 217 and a break of this level, in the long run, would help confirm the ascending triangle. On the downside, resistance at 209 could trigger losses back through trend support, with the 40 DMA next in line at 198.55. We expect the market to continue to trend higher through 209.

Ldn Coffee 2nd Month Futures 

Ldn coffee prices firmed on Friday as support at 2173 held firm,  triggering a close at 2214. The stochastics are positive but hover just below overbought territory, as the MACD diff is positive and diverging. Friday's full candle suggests stronger buying pressure, this could set the scene for higher prices to 2279, secondary resistance stands at 2300. On the downside, a rejection of prices above 2200 could trigger losses back to 2173 and 2127. The longer-term trend is on the upside and if prices hold above the 40 DMA the trend will still be intact. We anticipate the market to remain on-trend in the near term. 

NY Cocoa 2nd Month Futures 

NY cocoa weakened on Friday after prices failed above 2600, causing a close at 2580. The stochastics are falling with a sell signal on the horizon which could cause them to weaken back towards oversold. The MACD diff is also negative. The rejection of the 40 DMA and break below 2600 may set the scene for a test of support at the 50% fib level at 2534. Prices have been well supported between 2534 and 2600 and this could trigger gains back towards 2675 before 2726. We expect futures to soften in the near term. 

 

Ldn Cocoa 2nd Month Futures 

Ldn cocoa sold off sharply on Friday as protracted selling pressure triggered a close on the back foot at 1718, below the 61.8% fib level. The DMI is rising on the downside outlining negative sentiment. The MACD diff is negative and diverging as the stochastics are oversold. The downside trend is strong and we expect it to continue in the near term. The full candle and close below the 61.8% fib level, we expect prices to break towards 1700 with the 50% fib level. In order to improve upside sentiment, prices need to gain a foothold above the 61.8% fib level before targeting 1750.

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.