Coffee gained on Tuesday following a decline in U.S. inventories and shipments from Brazil that prompted processors to increase the bean prices on retail brands.

Inventories in warehouses that are monitored by the ICE Futures U.S. exchange, decreased by 3.1 percent this year, the lowest since Aug. 23 Last year.

Exports from Brazil declined by 4.9 percent in January due to low harvests.

Coffee futures for May delivery increased by 0.35 cent, or 0.2 percent, to $1.5085 a pound on ICE Futures, formerly the New York Board of Trade, after an earlier increase to as high as $1.513.

Robusta coffee futures for March delivery increased by $1 to $2,211 a metric ton on the Liffe exchange in London, where prices have increased by 16 percent this year.

In the past three weeks, coffee futures increased by 12 percent and the P&G increased the price of Folger's coffee by 6 percent yesterday.

The Agriculture ministry said Brazil's coffee production for the harvest that ended in October declined by 21 percent as a result of dry weather.

There are speculations that Vietnam and Colombia will ship fewer beans due to unfavorable weather.