Nov. 8 (Bloomberg) -- Cocoa prices in London had the biggest intra-day gain in more than five years on concern looting and violence in Ivory Coast will escalate, threatening to disrupt supplies from the world's biggest cocoa producer.

Anti-French demonstrators attacked homes, businesses and schools in the main port city of Abidjan, after France retaliated against air strikes by government forces on Nov. 6 that left nine soldiers and an American civilian dead.

Bombings last week violated a 2003 cease-fire agreement in the former French colony. The West African nation of 17.3 million people, divided since a failed coup two years ago, produces about 40 percent of the world's cocoa and is in the middle of its annual harvest.

``We have got a situation of extreme uncertainty'' in Ivory Coast, said Gary Mize, chief operating officer of Hong Kong-based Noble Group Ltd., which ships cocoa from Ivory Coast and other countries. ``Any price rise that's reflective of the uncertainty is warranted at this point.''

Cocoa for December delivery rose as much as 106 pounds, or 12 percent, to 1,019 pounds a ton -- the biggest intra-day gain since June 3, 1999. They traded at a three-month high of 1,001 pounds at 10:03 a.m. on the London International Financial Futures Exchange. Prices have risen 30 percent from a 32-month low of 810 pounds reached on July 2.

Cocoa prices in London surged 9.6 percent last week, the biggest weekly gain for a most-active contract since January, after Ivorian government forces on Nov. 4 bombed Bouake, stronghold of the Forces Nouvelles, the leading rebel group, and helicopters attacked the rebel-held town of Korhogo.

Mize said Noble was able to accept deliveries of cocoa beans on Nov. 6 at its port terminals in Abidjan and San Pedro, on the Gulf of Guinea.

`Turmoil'

``Hopefully, with some measure of luck and good management, we will be able to continue operations despite the turmoil,'' he said in a phone interview. ``We had a similarly tense situation two years ago that we were able to get through without any major catastrophe.''

The so-called Linas-Marcoussis agreement in January 2003 suspended hostilities in a civil war that has left hundreds of people dead and displaced 1 million since September 2002. Muslim rebels in the north and west battled forces loyal to Gbagbo, a Christian they accused of discriminating against them, in the south.

The United Nations last year sent 6,200 peacekeeping troops to Ivory Coast to monitor the Linas-Marcoussis agreement. The rebels have refused to disarm until reforms promised in the cease- fire are enacted.

To contact the reporter on this story: Jason Gale in Singapore at j.gale@bloomberg.net.

Last Updated: November 8, 2004 05:18 EST