"It's a bit tight at the moment. There are minor delays in November shipments, but it's not that serious," said one trader in Singapore.

Some short-covering in the past few days also caused as light tightness in Malaysia, he said. Another trader said the quality of the beans was improving as Malaysia and Indonesia, two main Asian cocoa producers, are reaching the peak of mid-crop harvesting.

The crop has been delayed by a drought earlier this year.

"We've seen reasonable amounts from Indonesia and Malaysia recently. The steady flow will continue," the second trader said.

Indonesia's mid-crop harvest is seen between 40,000 and 50,000 tonnes. Malaysia's cocoa output in calendar 1998 is expected to be much the same as last year's 106,000 tonnes.

Differentials were little changed from recent levels.

Sabah beans were offered at around 110/130 sterling under Londonlevels and Sulawesi beans were seen by the trade at around $160/$180 under New York prices.

Sabah, on Borneo island, is Malaysia's main cocoa growing area. The main areas in Indonesia are Sumatra and Sulawesi.

Recent unrest in Indonesia has not disturbed the cocoa market in Indonesia, traders said.

The Indonesian capital Jarkata was mostly quiet after a week of brutal violence which left at least 14 dead, scores wounded and several buildings in ruins.

Last week's protests were focused on a special session of the country's highest law-making body, the People's Consultative Assembly (MPR), which issued decrees in a move towards greater democratic reforms.

In May, bloody riots erupted after four students were shot dead during a protest against former Indonesian President Suharto, who resigned after riots. Many commodities traders in Indonesia, mainly ethnic Chinese, fled the country during the May riots.

"The crop is still coming out from Sulawesi and business was quite all right last week evenduring the protests.

I don't think we will have delays or anything like that," said the second trader. Possible delays would be caused by the crop situation but not protests, he said.