SOFTS-ICE cocoa rises after N. American grind

COCOA

* Cocoa futures on ICE rose to an 8-1/2-month high in early

trade on Friday as the political crisis in top grower Ivory

Coast spurred concerns about possible supply disruptions, and

were supported by a rise in North American grindings.

* North American cocoa grindings rose 4.64 percent in the

fourth quarter of 2010 from a year ago, data from the National

Confectioners Association (NCA) showed on Thursday, coming in

just above expectations. [ID:nN20158996]

* ICE May cocoa CCc2 rose $23 or 0.7 percent to $3,210 a

tonne at 0950 GMT, having earlier touched $3,240, the highest

level for the second month contract in 8-1/2 months.

* London's May cocoa contract LCCK1 rose 27 pounds or 1.3

percent to 2,129 pounds per tonne in moderate volume of 1,120

lots.

* Tougher action, possibly including force, is the only way

to make Ivory Coast incumbent Laurent Gbagbo step down after

mediation failed, rival presidential claimant Alassane Ouattara

said on Thursday. [ID:nLDE70J1YU]

* Indonesia's cocoa output may fall by an estimated 6.5

percent to 500,000 tonnes in the crop year Oct 2010/Sept 2011

due to a pod-borer pest attack and a fungal disease Vascular

Streak Dieback (VSD), the ICCO said on Friday. [ID:nL3E7CL099]

SUGAR

* ICE raw sugar futures were little changed in early trade

on Friday, underpinned by tight global supplies.

* The customs union of Russia, Kazakhstan and Belarus may

cut its import tariff for raw cane sugar to $50 from March after

domestic beet sugar production fell because of a drought, a

market source said on Friday. [ID:nLDE70K0A5]

* ICE March raw sugar SBc1 was up 0.02 cent or 0.06

percent at 31.33 cents a lb at 0952 GMT, while London March

white sugar LSUH1 rose $11.00 or 1.4 percent to $779.30 per

tonne.

* New York sugar SBc1 is expected to rise to 32.09 cents,

based on its wave pattern and a Fibonacci retracement analysis,

according to Reuters market analyst Wang Tao. [ID:nL3E7CL078]

COFFEE

* Arabica coffee futures on ICE firmed, supported by tight

global supplies of high-quality beans.

* ICE March arabicas KCc1 rose 2.8 cents or 1.2 percent to

$2.3645 per lb. The front month contract rose to its highest

level since June 1997 last week but has remained in a range

since, which could lead some funds to sell long positions.

* Liffe March robusta coffee LRCH1 was up $31 or 1.5

percent to $2,146 per tonne in volume of 1,239 lots at 0956 GMT.

* Vietnam's 2010/2011 coffee crop harvest produced 403,600

tonnes in the country's largest growing province of Daklak, up

around 6 percent from a year earlier, a state-run newspaper

reported on Friday. [ID:nHAN117374]

* Vietnam's processing capacity for soluble coffee could

double by late 2012 to 10,000 tonnes a year as new plants open

to meet rising domestic consumption, according to a sector

leader that is about to get a stock market listing.

[ID:nHAN100895]

* New York coffee KCc2 could rise to $2.4590, as a

relabelling of its wave pattern indicates a final wave (5) will

push the contract to the previous wave (3) peak, according to

Reuters market analyst Wang Tao [ID:nL3E7CL08B].

OTHER MARKETS

* Asian stocks were set to post their worst weekly

performance in nearly two months as rising inflation within the

region increased the risks of aggressive policy action and hurt

growth in the world's engines such as China and India.

[MKTS/GLOB]

* The euro rose against the dollar on Friday, nearing a

two-month high hit earlier this week, and traders said the

currency may see more gains in the near-term after a recent

improvement in sentiment. [USD/]

* Oil was on track for a weekly drop of more than 2 percent

on Friday, trading near its lowest in 10 days, after U.S.

inventories rose across all categories and on speculation

monetary tightening by China would restrain demand. [O/R]

* Stocks fell on Thursday as lacklustre tech and materials

earnings failed to live up to heightened expectations,

threatening to short-circuit a seven-week run. [.N]

* European shares were set to rebound from the previous

session's falls, with commodity stocks seen boosted by a

recovery in metals and crude prices, though gains were expected

to be kept in check by lingering concerns over monetary

tightening in China. [.EU]

(Source: http://af.reuters.com/article/commoditiesNews/idAFLDE70K0PY20110121)