* Cocoa up on political, financial turmoil in Ivory Coast
* Coffee roasters forced to buy despite high prices
* Sugar charts beginning to concern the bulls
* NY ag commodities to shut Monday for U.S. holiday
NEW YORK/LONDON, Feb 18 (Reuters) - U.S. cocoa futures marched up to their highest level in 14 months on Friday on prospects of bank nationalization in top grower Ivory Coast,
while arabica coffee scampered to a near-14-year peak on tight supplies.
Sugar settled mostly lower, with top grower Brazil set to harvest next month and possibly begin to crush earlier than previously expected, easing demand slightly. New York commodity markets will be closed on Monday in observance of the U.S. Presidents Day holiday. [ID:nN17127360]
Ivorian incumbent Laurent Gbagbo's government said the state would take control of all banks that had suspended operations in the West African state during the week, a move that turned the nation's post-election crisis into financial meltdown.
"The battle for power between president (Alassane) Ouattara, recognized internationally as the election winner, and former president Gbagbo is escalating," Commerzbank said in a note.
"Until the situation eases, cocoa prices should rise further, and it will only be a matter a time before the 30-year high (on ICE) from December 2009 is exceeded."
ICE benchmark May cocoa futures <CCc2> rose $61, or 1.8 percent, to settle at $3,499 per tonne, the highest close for the second-position contract since December 2009. The session high reached $3,511, although total volume was thin at just over 13,000 lots, 40 percent below the 30-day average.
Liffe May cocoa <LCCK1> closed up 31 pounds at 2,263 pounds a tonne, after earlier skipping to 2,279 pounds a tonne, its highest level since mid-July.
"Volumes are poor in both markets because people are too scared to do anything," a broker in London said.
Cocoa prices on ICE have rallied more than 20 percent since international sanctions and a month-long cocoa export ban have tried to squeeze Gbagbo of funds and force him to stand down
after a Nov. 28 election the United Nations said he lost.
"People are starting to worry about the quality, what's trapped there. It's probably a pretty justifiable concern," said Jack Scoville, an analyst with the Price Futures Group in Chicago. If Gbagbo remains in power and the cocoa export ban is extended past Feb. 23, hitting the mid-crop, more beans will be stranded in the country and start to rot at warehouses, analysts said, hurting the projected supply surplus.
COFFEE ROASTERS BUY
Arabica coffee prices continued to extend their gains as tight global supplies have forced roasters to buy, despite the high prices, and robusta coffee hit a 2-1/2-year peak, dealers said.
"There's good buying coming in terms of what roasters are doing, and there's some hedging getting lifted," a London-based trader said. "And, with robusta so much cheaper (than arabicas), people want to extend their cover there."
ICE May arabicas <KCc2> climbed 4.15 cents, or 1.5 percent, to settle at $2.73 per lb, the highest for the second position since May 1997. The contract closed the week up 7.1 percent,
the biggest weekly gain in nine weeks.
Arabica coffee open interest rose for the first time since last week on Thursday, after falling 16 percent in the past five sessions to a 11-month low. [ID:nN18292184]
Liffe May robusta coffee <LRCK1> finished up $32 at $2,337 per tonne, after rising to $2,358 a tonne, the highest since July 2008. Robusta prices have risen as some roasters substitute the cheaper bean
brackets: into their blends
source: (marcy.nicholson@thomsonreuters.com; +1 646 223 6043; Reuters Messaging: marcy.nicholson.reuters.com@reuters.net))
