Blue Line Breakfast Report - Sugar Cocoa Coffee OJ - January 30

“Actionable Trading Ideas that help you stay ahead of the markets”

Cocoa - YTD up 9.61%

As President Trump would say “Yuge” rally in the cocoa market as concerns about hot and dry weather grip the growing region. Looking at the enhanced weather satellite of South Africa we continue to see rain miss key areas. News of the Coronavirus spreading overnight may impact demand over the long haul however a key turnaround on the charts resumes the bullish momentum.

With the market punching through 2800, the next upside target is the contract high at 2859. First level of support would be today’s low at 2741 and a break below 2673 would be a devastating blow to the bulls.

R2 - 2900

R1 - 2859

S1 - 2741

S2 - 2673

Upside target = 2859

Reversal point = 2673

Sugar - YTD up 8.57%

Fundamentals are taking over as the global production deficit continues to expand, we should see futures rechallenge the contract highs at 14.87. Looking at outside markets, crude oil and corn continue their decline which might act as a headwind going forward. The current expectations are that the global deficit will be about 6 million tonnes.

R2 - 15.49 - High Nov 20th 2017

R1 - 14.90

S1 - 14.36

S2 - 14.05

Target - 15.49

Reversal point = 14.05

Orange Juice - YTD down 2.81%

Back into the boring trading range of 98 to 94.30, momentum indicators did have a small uptick and MACD did cross to the upside. This market needs some kind of supply threat or breakout close over 98 to ignite a short covering rally.

Coffee - YTD down 21.24%

A small attempt to defend the 100 level was made this morning as the bearish supply outlook continues to grow. We have seen the Brazilian Real fall to a 2 month low which continues to pressure producers. With 2000 Starbucks locations closed in China, this could continue to weigh in on demand.

R2 - 113.70

R1 - 109.09 - 200 DMA

S1 - 100.50

S2 - 96 - Key low from last October

Good luck and good trading,

Phillip Streible

Chief Market Strategist


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Futures trading involves substantial risk of loss and may not be suitable for all investors. 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.


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