Cocoa Jumps to 6-Month High Amid Ivory Coast Unrest; Sugar Rises in N.Y.

Cocoa jumped to a six-month high on concern that supplies from Ivory Coast, the world’s biggest producer, may be disrupted because of political unrest. Sugar gained in New York, while coffee fell.

A disputed election on Nov. 28 left Ivory Coast with two rival presidents and triggered a wave of violence that left at least 260 people dead, according to the United Nations. European Union-registered ships are barred from new financial transactions with the main cocoa ports in Abidjan and San Pedro, as part of sanctions begun last week.

“We could see some cocoa factories having to declare a force majeure because of supply disruptions,” said Tom Mikulski, a senior strategist at Lind-Waldock, a broker in Chicago.

Cocoa for March delivery jumped $78, or 2.5 percent, to settle at $3,178 a metric ton at 12:00 p.m. on ICE Futures U.S. in New York. After the close, the price touched $3,190, the highest for a most-active contract since July 16.

The commodity may surge to $3,300 a ton, Mikulski said, without giving a time frame.

Force majeure is a contract clause companies invoke to avoid penalties when they are unable to make deliveries because of events beyond their control.

In London, cocoa futures for March delivery rose 73 pounds, or 3.6 percent, to 2,128 pounds ($3,382) a ton on NYSE Liffe.

Raw-sugar futures for March delivery gained 0.13 cent, or 0.4 percent, to 31.31 cents a pound in New York.

Tunisia bought 18,000 metric tons of refined sugar and 14,000 tons of raw sweetener, for delivery by March, according to the Tunisian Office for Trade.

On NYSE Liffe, refined-sugar futures for March delivery fell $3.30, or 0.4 percent, to $768.30 a ton.

Arabica-coffee futures for March delivery dropped 0.7 cent, or 0.3 percent, to $2.318 a pound on ICE. In London, robusta- coffee futures lost $4, or 0.2 percent, to $2,115 a ton.

(Source: http://www.bloomberg.com/news/2011-01-20/sugar-climbs-in-london-after-report-russia-may-import-earlier-cocoa-rises.html)