NY 2nd Month Sugar Futures
NY sugar futures softened marginally yesterday as moderate selling pressure saw futures test appetite below trend support. The future closed at 18.21. The stochastics are falling, with %K/%D diverging on the downside in the oversold. Likewise, the MACD diff is diverging on the downside, confirming recent selling pressures. To confirm the change of momentum, futures need to break above the resistance at 18.35, which could set the scene for futures to take out the 18.57 level. On the downside, the market needs to take out support at 38.2% fib level at 18.11 and then support at 18.00. The smaller candle body points to a diminishing appetite on the downside, but a break below the trend support and the indicators point we could see further softness in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged lower yesterday, but support at 481 caused the market to close at 482.40. The stochastics are falling, with %K/%D in the oversold territory, and the MACD diff is negative and diverging, suggesting lower prices in the near term. To suggest the outlook of higher prices, futures need to close back above 490.30 and then target 100 DMA at 498.15 before 500. However, a break below support at 480 could set the scene for 471.80 and then 460. The narrow candle body with short upper and lower wicks points to a lack of appetite for either direction yesterday, and the futures need to break out of current resistance/support to confirm the near-term outlook.
NY 2nd Month Coffee Futures
NY coffee futures strengthened yesterday as protracted buying pressure prompted a test of the 10 DMA level to close at 236.60. The stochastics are falling, but %K is seen tailing off, pointing to a potential end to selling momentum. MACD, however, is positive and about to converge, which could be a strong sell signal. To confirm another bullish candle, futures need to close above 10 DMA at 235.94 and then target the 240. On the downside, the break below 230 could set the scene for lower prices towards the support of 226.55. However, the market struggled below that level in recent sessions, and the bullish engulfing pattern suggests a strong buy signal. We believe that prices will strengthen in the near term, however, the indicators are pointing to a price softening in the longer term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged higher yesterday, breaking above resistance at 10 DMA and closing at 2265. The stochastics are rising, with %K/%D just converging on the upside, a strong buy signal. The MACD diff is negative and converging, outlining further bullish momentum in the near term. On the upside, futures need to break above 2279 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 2300; this could strengthen the trend in the long run on the upside. A break back below the current support at 40 DMA at 2204 would bring into play 2173. We see prices edge higher in the near term, highlighted by recent bullish momentum and positive indicators, however, futures need to close above the current resistance to confirm the outlook for higher prices.
NY 2nd Month Cocoa Futures
NY cocoa futures rallied yesterday as protracted buying pressure triggered a close on the front foot above 2436 at 2453. The RSI is rising, while %K/%D is about to converge on the upside, edging out of the oversold. The MACD diff is negative and converging, confirming waning selling pressures. On the upside, a break above the 10 DMA at 2477 could trigger gains through 2500 towards 2510. On the downside, a break below the key support level of 2317 could trigger losses back towards 2300, Long candle body points to more certainty in the bullish momentum, and a break above 10 DMA would confirm the outlook for higher prices.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures surged yesterday as protracted buying pressure prompted a close back above 1650 at 1683. The stochastics are rising, with %K/%D about to converge on the upside, and the MACD diff is negative and converging. The bullish engulfing candle could set the scene for higher prices, a break of resistance at 1700 could trigger gains towards 200 DMA at 1707. However, prices have failed at 1750 in recent weeks, and this could set the scene for lower prices back to 23.6% fib level at 1628 and then 1600. We expect prices to consolidate recent gains today and remain on the front foot.