Traders are braced for a jump in cocoa prices after the internationally recognised president-elect of Ivory Coast imposed a one-month export ban in an attempt to oust Laurent Gbagbo, who the global community said lost elections but refuses to step down.
Cocoa is the main source of income for the government of Ivory Coast. Any stoppage in exports would cut the funding Mr Gbagbo relies on to pay loyal civil servants and the military. Diplomats believe he needs about $150m a month.
Any reduction in supply is likely to push the price of the commodity towards a 33-year high because Ivory Coast accounts for about 40 per cent of global exports. The cocoa market closed on Friday at a six-month high of £2,114 per tonne and traders fear prices could jump as much as 10 per cent on opening today.