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Authors
Daria Efanova

Daria Efanova Head of Research

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NY 2nd Month Sugar Futures

NY Sugar 25102024

NY sugar futures opened higher day on the day yesterday but struggled above the 40 DMA to close at 20.50. The stochastics are rising, with the %K/%D edging higher out of the oversold, as the MACD diff is negative and converging. This suggests we could see further upside momentum in the near term. To confirm this, prices need to break above the 40 DMA at 20.77. If the prices break through this level, we could see prices gain ground through 21.00. On the downside, a break below the 10 DMA at 20.50 and 20.00 could signal further downside potential. The bearish candle body after a robust candle points to uncertainty above the 40 DMA and we could see prices edge lower today as they struggle above this level.

Ldn 2nd Month Sugar Futures

Ldn Sugar 25102024

Ldn sugar futures opened higher yesterday, but resistance of 580.70 held firm once again, causing futures to close lower on the day at 577.10. The stochastics are seen growing on the upside, with the %K/%D converging on the upside, a strong buy signal, and the MACD diff is negative and converging. A break of the 10 DMA at 575.13 could trigger losses through 570, with the tertiary level at 40 DMA at 562.10. On the upside, a break above 580.70 could set the scene for bullish momentum towards 590. Yesterday’s candle once again suggested that prices struggled above the 580.70 level; however, the indicators suggest further upside in the near term. We expect this level to be tested once again today.

NY 2nd Month Coffee Futures

NY Coffee 25102024

NY coffee weakened yesterday as protracted selling pressure triggered a close on the back foot at 244.45. The stochastics are falling, diverging on the downside, signalling a continuation of this trend. The MACD diff is negative and diverging. A full bearish candle suggests growing selling pressures; this could set the scene for lower prices to break below the 100 DMA at 253.66, which is robust support. This would confirm the trend for a longer-term trend change, down to 240. On the upside, resistance at 10 and 40 DMAs has proven to be strong, and a break above that level would strengthen the bullish momentum. This could also trigger gains towards the 260. The bearish engulfing pattern suggests an impending market downturn, and we expect prices to continue to fall in the near term.

Ldn 2nd Month Coffee Futures

Ldn Coffee 25102024

Ldn coffee opened lower yesterday, but support at 4338 held firm, causing futures to close lower day-on-day at 4597. The stochastics are falling lower in the oversold, and the MACD diff is negative and flat, suggesting prices will remain on the back foot in the near term. To confirm this, current support needs to be broken first before testing the 4200 level. On the upside, resistance at 4500 and then 100 DMA at 4544 are to be breached to set the scene for 10 DMA at 4597. A longer upper wick suggests that most of the trading took place in the lower ranges during the day as futures continued to test the near-term support. We expect this level to be tested once again in the near term.

NY 2nd Month Cocoa Futures

NY Cocoa 25102024

NY cocoa futures edged lower yesterday after prices failed above the previous day’s lows, prompting a close at 6245. The stochastics are falling, with %K/%D edging towards the oversold, and the MACD diff is negative and diverging, confirming the outlook for lower prices. To confirm the bearish indicators, futures need to break below the support at 6000 and then target 5824. On the upside, the 10 and 40 DMA resistances need to be broken above in order to confirm the outlook of higher prices. We expect prices to weaken in the near term.

Ldn 2nd Month Cocoa Futures

Ldn Cocoa 24102024

Prices weakened yesterday as moderate selling pressure triggered a close at 4744. The stochastics are falling; the %K/%D is diverging towards the oversold, signalling a continuation of a bearish trend. The MACD diff is positive and converging, suggesting we could see lower prices in the near term. A break below the DMAs supports market decisiveness for lower prices. On the upside, a break above 10 DMA at 5045 could see the test of 5259 level. We expect prices to soften today and remain on the back foot.

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