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London - Cocoa surged to near its highest price in 30 years on Monday as Alassane Ouattara, battling to be Ivory Coast's president, urged a month-long ban on exports from the top producer to starve his rival of cash.
Dealers said the international market was confused over the potential impact of Sunday's call by Ouattara - internationally recognised as the victor of a November 28 election - given that incumbent Laurent Gbagbo controls the supply routes to ports.
Ouattara, who is in a hotel guarded by UN troops, said anyone contravening the ban would be subject to sanctions.
But his power to enforce them was in doubt as Gbagbo, who has appointed an administration and rejected pressure to step down, was likely to do everything possible to facilitate exports to generate cash to pay the military and state workers.
Buyers swooped on the commodity as a precaution.
"The larger players are taking measures to secure themselves. People have bought cocoa and cocoa products to mitigate their risks," a big European cocoa trader said.
"Everybody is in the dark," the trader added.
First signs were that the halt on exports, due to start on Monday, had not taken effect.
Nevertheless, ICE May cocoa jumped 3.4% or $109 to $3282 per tonne in midday trade having earlier touched a one-year peak of $3 340 per tonne.
ICE second-month cocoa was within sight of its December 16, 2009, peak of $3 514, the highest level in more than 30 years.
Liffe May cocoa was up £73 or 3.5% to £2 187 per tonne, having earlier touched a six-month high of £2 269 per tonne.
Cocoa exporters in Ivory Coast, which produces more than a third of the world's cocoa, said they were conducting business as usual.
A European Commission source said the EU's sanctions on the country did not amount to a cocoa trade ban, and importers in big consumer Germany said there was no major disruption.
"The EU is applying targeted sanctions, in part aimed at avoiding negative consequences for the local population, so there is no embargo on trade," the source said.
Dealers said that if exporters respect Ouattara's call for an export ban, there will be less availability of cocoa on the international market, which could send cocoa prices rocketing.
"If it's enforced prices of cocoa will go through the roof," Gary Mead, analyst with the VM Group in London, said of Ouattara's call. "If he's serious, if they can enforce such a trade embargo, the disruption would be huge."
Cocoa arrivals at ports in Ivory Coast reached around 843 000 tonnes by January 23, exporters estimated on Monday, compared with 759 408 tonnes in the same period of the previous season.
Dealers said the international market was confused over the potential impact of Sunday's call by Ouattara - internationally recognised as the victor of a November 28 election - given that incumbent Laurent Gbagbo controls the supply routes to ports.
Ouattara, who is in a hotel guarded by UN troops, said anyone contravening the ban would be subject to sanctions.
But his power to enforce them was in doubt as Gbagbo, who has appointed an administration and rejected pressure to step down, was likely to do everything possible to facilitate exports to generate cash to pay the military and state workers.
Buyers swooped on the commodity as a precaution.
"The larger players are taking measures to secure themselves. People have bought cocoa and cocoa products to mitigate their risks," a big European cocoa trader said.
"Everybody is in the dark," the trader added.
First signs were that the halt on exports, due to start on Monday, had not taken effect.
Nevertheless, ICE May cocoa jumped 3.4% or $109 to $3282 per tonne in midday trade having earlier touched a one-year peak of $3 340 per tonne.
ICE second-month cocoa was within sight of its December 16, 2009, peak of $3 514, the highest level in more than 30 years.
Liffe May cocoa was up £73 or 3.5% to £2 187 per tonne, having earlier touched a six-month high of £2 269 per tonne.
Cocoa exporters in Ivory Coast, which produces more than a third of the world's cocoa, said they were conducting business as usual.
A European Commission source said the EU's sanctions on the country did not amount to a cocoa trade ban, and importers in big consumer Germany said there was no major disruption.
"The EU is applying targeted sanctions, in part aimed at avoiding negative consequences for the local population, so there is no embargo on trade," the source said.
Dealers said that if exporters respect Ouattara's call for an export ban, there will be less availability of cocoa on the international market, which could send cocoa prices rocketing.
"If it's enforced prices of cocoa will go through the roof," Gary Mead, analyst with the VM Group in London, said of Ouattara's call. "If he's serious, if they can enforce such a trade embargo, the disruption would be huge."
Cocoa arrivals at ports in Ivory Coast reached around 843 000 tonnes by January 23, exporters estimated on Monday, compared with 759 408 tonnes in the same period of the previous season.
