Coffee rallied on Monday posting the highest gain since 1995 after the funds increased purchases on concern that supplies will not be enough due to high demand for the bean.

Robusta coffee for May delivery increased by 4.3 percent or $108, to $2,610 a metric ton on the Liffe exchange.

Coffee futures for May delivery in New York increased by 0.7 percent to $1.6360 a pound.

Coffee growers in Vietnam, the biggest producer of the variety, stopped sales of the beans this year in anticipation of further price gains causing Robusta coffee to increase by 34 percent.

According to the International Coffee Organization, world coffee production of about 123 million and 126 million bags will be just enough to meet demand in the year to October 2009, keeping stockpiles near record-low levels.

Cocoa exports from Cameroon, the world's fourth-largest producer, increased in the week that ended Feb. 24 when the nation exported 635 metric tons of beans but 37 percent lower than the exports in the previous week.

White and refined sugar for May delivery increased by 0.5 percent or $2, to $378 a ton.