Cocoa price hits 16-year high

The price of cocoa has soared to its highest level for 16 years because of fears that a military uprising in Ivory Coast will cut off supplies. Fighting broke out last week in the West African country, which is the world's biggest grower of cocoa.

Ivory Coast supplies 40% of the world's cocoa and the next three months are crucial for prices as most of the crop is shipped between October and Christmas.

The price of cocoa for delivery in December jumped $37 (?23) in New York to $2,157 per tonne on Wednesday, a rise of nearly 2% and the highest closing price since September 1986.

Roadblock fears

Prices had already risen by about 60% this year because of a shortage of the crop.

Supplies of cocoa beans are now expected to be poor for the third year in a row.

"Everyone's concerned about the movement of beans, whether beans will move smoothly or whether there will be roadblocks," said Boyd Cruel of American brokers Alaron Trading in Chicago.

"We're already dealing with a production deficit this year," he added.

The centre of the uprising, the city of Bouake, was reported to be relatively quiet on Wednesday morning, though gunfire was heard early in the day.

The French and US governments have sent troops to evacuate their citizens.

The government of Ivory Coast has accused the rebels of being backed by foreign governments.

But they say they are fighting against dictatorship and deny having outside help.

They have accused the Ivory Coast government of using Angolan troops in their attempts to retake the town of Bouake.