Sugar Bases as India Cuts 4th Quarter Production

Breakfast Report Research Posts

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A deep dive into the technical and Proprietary Levels in Coffee, Cocoa,  Sugar, and Cotton.

Cocoa

Technicals (March)

50 DMA = 4097

200 DMA = 3448

Bull Trend Trigger Point: 4292

Bear Trend Trigger Point: 4135

Cocoa futures flipped to a Neutral Trend on December 29th, however our bias is to the upside. The lack of adequate fertilizer and pesticides will keep farmers struggling to create a bumper crop. Port arrivals have been behind pace and we are anticipating another weaker production outlook in 2024. 

Bias: Neutral

Previous Session Bias: Neutral

Resistance: 4300-4350***

Pivot: 4135

Support: 4097

Coffee

Technicals (March)

50 DMA = 177.32

200 DMA = 169.33

Trend Reversal Point = 188.08

With the “Golden Cross” upon us, Coffee futures flipped to a Bullish Trend on October 19. Only a close below 188.08 returns the market to a Neutral trend. Dry conditions in key growing regions continue to provide support as well as declining exchange stock inventories. 

Bias: Bullish/Neutral

Previous Session Bias: Bullish/Neutral

Resistance: 197.00**, 200.00***

Pivot: 187.95**

Support: 180.00-177.00***

Sugar

Technicals (March)

50 DMA = 25.02

200 DMA = 24.74

Bear trade trigger = 26.04

 Sugar futures slipped back into a bearish trend on November 30 at 26.04 on record Brazilian production. However, a declining Indian 4th quarter production has provided a backstop on declining prices. Watch for a short covering rally in the coming days/weeks ahead. 

Bias: Bearish/ Neutral

Previous Session Bias: Bearish/Neutral

Resistance: 21.95-22.00***

Pivot: 21.50

Support: 20.50-20.00**** Pocket Support

Cotton

Technicals (March)

50 DMA = 81.04

200 DMA = 82.91

Trend Reversal Point = 81.63

Bear Trade Trigger = 79.10

Cotton futures slipped back into a bearish trend on the close of December 18th but since then have traded in more of a coiling sideways channel. Traders will want to use options or calculated risk strategies until we can see further evidence of a trend building. 

Bias: Bearish/Neutral

Previous Session Bias: Bearish/ Neutral

Resistance: 82.91*** (200 DMA)

Pivot: 81.63

Support: 79.95-79.00** Pocket Support

Phillip Streible, Chief Market Strategist

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Futures trading involves a substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians, or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy, and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third-party application. Blue Line Futures employees use only firm-authorized email addresses and phone numbers. If you are contacted by any person and want to confirm your identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

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