NY 2nd Month Sugar Futures
NY sugar prices have suffered in recent sessions, helping to confirm the rejection of prices above the 40 DMA. The market closed at 18.78 yesterday as the stochastics fell further into oversold and the MACD diff is negative and declining, outlining weakening sentiment. The close below support at 18.83 could set the scene for lower prices towards the 100 DMA. A break of this level could indicate a change in trend in the near term, this could prompt a decline towards 18.17 in the medium term. Support at the 100 DMA has held firm in recent sessions, and this could set the scene for higher prices towards the 40 DMA. Volumes have declined suggesting little conviction at these prices.
LDN 2nd Month Sugar Futures
Ldn sugar prices broke through support at 512.90 to close at 510.10. The indicators are weakening and are oversold but volumes have declined sharply in recent weeks as prices have declined, reducing conviction. The MACD diff is negative and yesterday's full candle indicates improved momentum. This could trigger losses back towards the 100 DMA at 505.92, a break if this level would help to confirm a change in trend towards 500. On the upside, futures need to regain a footing above 512.90 and then 520 in the near term in order to confirm the outlook of higher prices. We expect prices to remain on the back foot in the near term.
NY 2nd Month Coffee Futures
NY coffee prices consolidates yesterday after testing support and resistance, the market closed at 217.95. The indicators are falling further into oversold with the MACD diff negative but converging. The long term descending triangle is still intact, if support continues to hold firm and prices break above 220 and then 223 in order to confirm the outlook of higher prices. Futures have struggling in recent weeks and a break below support at 212 would confirm the descending triangle. With prices holding above key support momentum remains on the upside but prices needs to break above the 227.95 in order to confirm the outlook of higher prices and rejection of the descending triangle.
Ldn 2nd Month Coffee Futures
Ldn coffee futures gained ground yesterday as intraday trading saw prices supported to test near term resistance at 2116, the market closed at 2115. The indicators are pushing higher and the break of near term resistance is bullish for the market, if futures can gain a footing above 2137.68 the market could trigger losses back to 2019. The MACD diff is positive and diverging suggesting higher prices but this will not be confirmed unless prices break above 2200. On the downside, rejection of prices at the 23.6% fib level and this could trigger losses back to 2019. A break here would trigger losses back to 1952.
NY 2nd Month Cocoa Futures
NY cocoa futures consolidated yesterday as intraday trading saw prices test support and resistance but failed above 2620 and the market closed at 2607. The stochastics are rising through neutral territory and the MACD diff is positive and diverging, this could set the scene for higher prices through resistance at 2620, prices need to gain a footing above this level in order improve momentum but the key level in the long run remains 2667. On the downside, repeated rejection above 2620.26 could trigger losses back through 2553 and then target 2500. The market remains in a wide range and we expect this to remain the case in the immediate and medium term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures gained ground yesterday with appetite for prices testing trend resistance, the market closed at 1834. The stochastics are rising towards overbought, the gap between the stochastics suggests momentum is strong. The MACD diff is behind the stochastics and in order to confirm the outlook of higher prices, futures need to break above trend resistance and then target 1888. This would confirm a longer term trend change and may prompt a break through 1900. Rejection of trend resistance could prompt prices to fall back towards 1800 with the market targeting the moving averages around 1755-1765.