London cocoa futures closed stronger on Wednesday after touching the highest level in almost six weeks when speculators jumped into the New York market, floor sources said. "There's aggressive fund and speculator buying in New York and London is playing catch-up," a trader said. liffe's benchmark March closed up 12 pounds at 855 pounds a tonne, having reached an intra-day high of 863 pounds, the loftiest price since December 17 when it hit 881 pounds.
The contract, which made a session low of 835 pounds, drew volume of 6,682 lots from a total of 13,421 lots.
NYBOT's March contract settled $46 stronger at $1,573 a tonne on Wednesday after hitting an intra-day peak at $1,583.
Prices are expected to make strong gains in 2005 as production lags demand for the first time in three years and political instability in Ivory Coast aggravates supply worries, a Reuters poll showed on Tuesday.
Some in the market fear unrest in the world's top cocoa grower ahead of elections slated for October.
A key opposition figure said on Wednesday the UN should take charge of presidential elections in Ivory Coast later this year and protect civilians in a country still teetering on the brink of civil war.
Ivory Coast's rebels will not lay down their weapons till President Laurent Gbagbo meets their demands for a fully functioning power-sharing government, rebel leader Guillaume Soro said in an interview on Tuesday.
Cocoa bean stocks at Lagos warehouses are at historical highs after unusually heavy arrivals in January, and this year's harvest may match last year's big crop of 190,000 tonnes, dealers in Nigeria said on Wednesday.
The main crop in the world's fourth largest cocoa exporter was a little later than usual this year due to a late rainy season, but about 50,000 tonnes of cocoa arrived in Lagos in January and stocks in the capital were around 60-70,000 tonnes.
COFFEE NEAR 4-WEEK HIGH: Liffe coffee futures ended near a four-week high on Wednesday after heavy fund buying pushed up prices, dealers said.
"Funds came in and bought. We also saw some structural trade and good overall volume," one trader said.
liffe's benchmark March gained $17 to $769 a tonne after turning over 8,900 lots in a $770-749 band.
March reached its highest since trading at $785 on December 30. Total volume reached 22,661 lots.
May ended $17 higher at $795 on 7,963 lots, while front-month January added $18 to close at $747 on turnover of 103 lots.
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