Coffee in London posted gains on Thursday for a second day after funds tried to diversify their investments from stocks.
Robusta coffee for May delivery increased by 1.5 percent, or $39, to $2,679 a metric ton on the Liffe exchange.
Coffee prices have gained 39 percent since the start of this year.
There are speculations that the California Public Employees' Retirement System, the largest U.S. pension fund with $240 billion in assets, will increase its commodities investments 16-fold to $7.2 billion by 2010, after investing $450 million into commodities last year.
Coffee gains were also boosted by a decline of the dollar against the euro yesterday.
Arabica futures for May delivery in New York dropped 0.9 percent to $1.6265 a pound.
The world coffee production of about 123 million and 125 million bags was forecasted to just be enough to meet demand in the year to October 2009, keeping stockpiles near record-low levels.
White or refined sugar for May delivery dropped by 1.1 percent, or $4.20, to $380 a ton.
Sugar prices have increased by 20 percent this year.
There are speculations that global sugar production for October 2007 to September 2008 may surpass consumption by 9.309 million tons.
The India Finance Ministry said sugar stockpiles in the nation may increase to 18 million tons this year, which may be enough to meet demand for more than 10 months.
Cocoa futures for May delivery increased by 2.3 percent, or 31 pounds, to 1,409 pounds ($2,799) a ton on the Liffe exchange.