LONDON: London cocoa futures climbed to a five-week high on Monday as a four-day nationwide army mutiny in top producer Ivory Coast triggered a wave of short-covering, dealers said.
Raw sugar futures were also higher, boosted by broad-based strength in commodity markets.
COCOA
July London cocoa was up 35 pounds, or 2.2 percent, at 1,604 pounds a tonne by 1356 GMT after climbing to a peak of 1,638 pounds, the highest for the benchmark second position since April 7.
There was heavy gunfire in Ivory Coast's two largest cities of Abidjan and Bouake on Monday as a mutiny by disgruntled soldiers gathered pace, threatening the country's rapid emergence from a civil war.
"It (the rise) is all on Ivory Coast and the size of the short positions in both London and New York," one dealer said, noting that speculators were covering substantial short positions in both markets.
Dealers said buy-stops were triggered in early trade, helping the market surge to session highs. Prices fell back, however, once the initial buying spree subsided.
July New York cocoa was up $44, or 2.2 percent, at $2,059 a tonne.
SUGAR
July raw sugar rose 0.32 cents, or 2.1 percent, to 15.83 cents per lb, supported by a broad advance in commodity markets.
"Raws are going up on the back of the commodity basket. Oil is the main leader and everything else has followed. There is no sugar reason for this rally," one dealer said.
Oil hit its highest in more than three weeks, topping $52 a barrel after Saudi Arabia and Russia said that supply cuts need to last into 2018, a step towards extending an OPEC-led deal to support prices for longer than first agreed.
White sugar showed more modest gains, with August up $2.80, or 0.6 percent, at $444.80 a tonne, leading to a fall in the white sugar premium.
"Whites demand slowed down quite considerably about a month ago and it has just taken a little while (for prices) to catch up," one dealer said.
Egypt's state-buyer GASC is seeking at least 50,000 tonnes of raw sugar in a purchase tender, it said on Saturday.
COFFEE
July robusta coffee fell $7, or 0.35 percent, to$1,987 a tonne.
"The outlook marginally favours the downside as prices continue to consolidate around $2,000," Sucden Financial analyst Geordie Wilkes said in a market note.
July arabica coffee was down 0.25 cents, or 0.2 percent, at $1.3470 per lb.
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