Watchdogs eye 'Chocolate Finger'

AN inquiry has been launched over concerns that a single trader cornered the world's market in cocoa beans and helped push up the price.

The Financial Services Authority and Liffe, the futures exchange where cocoa is traded, are trawling through movements in the price following the activities of Anthony 'Chocolate Finger' Ward.

Ward, a 20-year trading veteran and founder of London trading firm Armajaro, bought 5% of the world's cocoa at the end of July. He has 204,380 metric tonnes is worth £286.1m, based on today's price of £1,400 a metric tonne.

It is not known how much Ward paid for his beans, but he is said to be sitting on a profit running into tens of millions of pounds.

The FSA, which took on new policing powers at the beginning of the year, wants to make sure no one is 'abusing' the price of cocoa. We are monitoring activity in the cocoa market in conjunction with Liffe, and we're keeping a close eye on what's going on,' an FSA spokesman said.

Liffe said it didn't believe the cocoa market was being manipulated but wanted to ensure there was 'an orderly market'.

Ward, 42, the father of two sons, has not done anything illegal. Unlike cocoa trading in the US, Liffe does not impose any restrictions on the amount of beans that a trader may hold. But his actions have prompted fears that, because of a chronic shortage, some traders could control the price, which has more than doubled in the past 18 months.

Consumers will certainly have to pay more for chocolate. The head of research at a top cocoa broker said: 'It's already happening in Brazil, eastern Europe and Switzerland. The price is definitely going up.'