SOFTS-Cocoa rises as investors weigh West Africa tensions, commodities index inclusion

NEW YORK, Nov 4 (Reuters) - Cocoa futures on ICE rose on Tuesday after soaring in the prior two sessions as investors priced in news of cocoa's inclusion in a major commodities index and simmering tensions in Nigeria and Cameroon, the world's fourth- and fifth-largest producers.

COCOA

New York cocoa CCc1 settled up $41, or 0.6%, at $6,600 a metric ton, having closed up 6.6% on Monday.

London cocoa LCCc2 rose 1.3% to 4,849 pounds per ton after hitting 4,864 pounds, its highest since late September.

The chocolate ingredient has been boosted by plans for New York cocoa to be included in the Bloomberg Commodity Index from next year.

Citi estimates cocoa futures could have an investment inflow of $2.1 billion following the index inclusion.

Elsewhere, tensions in Cameroon remain high following last week's contested election, while U.S. President Donald Trump has ordered the military to prepare for action in Nigeria to tackle Islamist militant groups.

"These two nations are expected to produce a total of 715,000 metric tons (this season)," noted broker StoneX.

On the downside, analysts at Zuercher Kantonalbank estimate Barry Callebaut BARN.S will report a 9% decline in fourth-quarter sales volumes on Wednesday.

SUGAR

Raw sugar SBc1 settled down 0.43 cents, or 2.9%, at 14.22 cents per lb, heading back towards last week's five-year low of 14.07.

Associated British Foods ABF.L on Tuesday reported a 13% drop in full-year profit driven by a weak performance in its sugar unit.

Fundamentals remain bearish in sugar, with the prospect of a substantial global surplus in the 2025/26 season.

White sugar LSUc1 fell 2.3% to $413.40 a ton.

COFFEE

Robusta coffee LRCc2 fell 0.3% to $4,681 a ton, after gaining more than 3% on Monday.

Dealers noted that typhoon Kalmaegi is projected to pass near top robusta grower Vietnam's central coast by November 7, and that while the storm's centre is expected to remain offshore, rains could still reach the Central Highlands coffee belt.

Arabica coffee KCc1 fell 0.3% to $4.0525 per lb, having settled up 3.7% on Monday.

The next step in trade talks between Brazil and the United States is unclear, with Brazilian President Luiz Inacio Lula da Silva saying the country is ready to talk.