Coffee climbs 1 percent

Coffee climbs 1 percent

LONDON (Bloomberg): Coffee gained as much as 1 percent yesterday to its highest in more than two weeks as Indonesian and Ugandan traders withheld beans, hoping to boost prices.

Indonesian and Ugandan growers are holding on to supplies on expectations demand from roasters will boost prices ahead of the peak winter season that begins September, traders said.

Indonesia is the world's biggest grower of bitter-flavored robusta coffee and the third-largest producer overall.

"The producers are looking for better prices," said Arun Shah, executive director of London-based traders Weingeist Ltd. "The coffee will be there if the price is right."

Coffee for September delivery gained as much as US$15, or 1 percent, to $1,648 a metric ton on the London International Financial Futures and Options Exchange, its highest price since Aug. 10. Yesterday the contract rose $15.