Cocoa Rises as Abidjan Fighting Enters Fifth Day; Sugar Climbs

Cocoa rose for a second day in London as conflict continued in the commercial capital of Ivory Coast, the world’s largest producer. Sugar climbed.

The fight for Abidjan entered a fifth day today, with forces loyal to President-elect Alassane Ouattara having captured much of the city since the start of their attack on March 31. Fighting continues around the presidential palace and at some army bases, residents said. The whereabouts of incumbent leaderLaurent Gbagbo is unknown.

“Rebels continue to fight and there doesn’t seem to be a quick solution to the political crisis,” Michaela Kuhl, an analyst with Commerzbank AG said by phone from Frankfurt today. “People are focusing on the long term now as there may not be enough workers for the mid-crop harvest.”

Cocoa for July delivery advanced 23 pounds, or 1.2 percent, to 1,973 pounds ($3,182) a ton by 10:34 a.m. on NYSE Liffe in London. Cocoa for May delivery rose $49, or 1.6 percent, to $3,0620 a ton on ICE Futures U.S. in New York.

A month ago, Ouattara’s militia, known as the Republican Forces, started to move south from their bases in the north. They swept through much of the country in the past 10 days as Gbagbo’s troops offered little resistance.

Cocoa supplies from the West African nation have been disrupted since Jan. 24, when Ouattara ordered an export ban in a bid to cut off funds to Gbagbo, who refused to step down after a disputed Nov. 28 election.

Coffee Rises

Robusta coffee for July delivery fell $42, or 1.8 percent, to $2,300 a ton in London. Arabica coffee for May delivery declined 0.2 percent, to $2.595 a pound in New York.

Export demand from Brazil, the world’s largest producer, has slowed down, Rodrigo Costa, vice president of institutional sales at Newedge USA LLC, said in an e-mailed report April 3. “The short-term is vulnerable, indicating that new lows could happen,” he wrote in the report for Brazil’s Archer Consulting.

Hedge fund managers and other large speculators decreased their net-long position in New York coffee futures in the week ended March 29, according to U.S. Commodity Futures Trading Commission data. Speculative long positions, or bets prices will rise, outnumbered short positions by 23,936 contracts on ICE Futures U.S., the Washington-based commission said.

White, or refined-sugar futures for May delivery rose 0.4 percent to $716 a ton on NYSE Liffe. Raw sugar futures for May delivery advanced 0.9 percent at 27.70 cents a pound on ICE Futures U.S.

(Source: http://www.bloomberg.com/news/2011-04-04/cocoa-rises-as-abidjan-fighting-enters-fifth-day-sugar-climbs.html)