London cocoa edges up amid political tensions in Ivory Coast

NEW YORK/LONDON: London cocoa prices closed up on Thursday amid increased political risk in top producer Ivory Coast, while arabica coffee scaled a fresh two month peak only to slip back as the Brazilian real weakened.

COCOA

September London cocoa settled up 4 pounds, or 0.3%, to 1,545 pounds per tonne.

The party of Ivory Coast's former President Laurent Gbagbo, who was acquitted of war crimes by the International Criminal Court last year, called on Wednesday for him to run for president in October elections.

A candidacy for Gbagbo, who refused to step down from office after a disputed 2010 election, sparking a civil war that killed about 3,000 people, would be a twist in a tense build-up to polls that many fear could spark more violence.

Chocolate maker Hershey expects sales to accelerate in the months ahead, after falling 3.4% in the quarter ended June 28, hit by a drop in demand in overseas markets.

September New York cocoa settled down $3, or 0.1%, to $2,202 a tonne.

COFFEE

September arabica coffee settled down 0.85 cents, or 0.8%, at $1.075 per lb, having hit a two-month top of $1.1195 in the previous session.

Analysts Safras & Mercado said Brazil's coffee harvest reached 71% of the area by July 21, in line with a five-year average of 72%.

September robusta coffee settled down $7, or 0.5%, at $1,350 a tonne, having hit its highest since late January at $1,369 amid talk that the economic downturn is prompting a shift in consumption toward cheaper, instant coffee blends.

SUGAR

October raw sugar settled down 0.09 cents, or 0.8%, at 11.77 cents per lb, having settled up 1.6% on Wednesday.

Dealers said there was little to push sugar out of its recent 11.50-12.00 cent range amid a lack of fresh fundamental news and as prices have even detached somewhat from wider financial markets.

Archer Consultancy said on Thursday Brazilian sugar mills are advancing hedging for next year's crop, having hedged 4.2 million tonnes for the 2021-22 season already.

October white sugar settled down $2.00, or 0.6%, at $357.00 a tonne.