UPDATE 2-P&G ups cost of Folgers, Dunkin' Donuts coffees

(Adds details, background, futures price)

By Marcy Nicholson

NEW YORK, March 3 (Reuters) - The largest U.S. roaster increased the list prices of some of its Folgers coffees, for the second time in three weeks, and a Dunkin' Donuts coffee, citing climbing green coffee prices, a Procter & Gamble (PG.N) spokesman said on Monday.

P&G hiked the list prices of some of its Folgers coffees by 3.5 to 7 percent, and Dunkin' Donuts by 6 percent, effective immediately. The price increase was P&G's second since Feb. 11, Bryan Brown said.

"Green coffee prices have continued to rise sharply over the past three weeks. This past week New York "C" arabica and London robusta markets have traded at more than 20 cents per pound versus our previously stated price for Folgers mainstream coffee," Brown said.

P&G is seen as an industry trendsetter and other U.S. roasters were expected to follow. After the company's February price increase, Massimo Zanetti Beverage USA raised the list prices of many brands such as Chock full o'Nuts. Kraft Foods Inc (KFT.N) also followed and raised list prices of some of its Maxwell House and Yuban roast and ground coffees.

Previously, all three companies increased some of its coffee prices in October 2007, also citing increased green coffee prices.

P&G's latest increase will see Folgers Ground increase by 20 cents, or seven percent, per 10.5 to 13 ounce package equivalent. Folgers Instant Coffee will rise 24 cents, or 5 percent, per 8 ounce jar and Folgers Gourmet Selections will see a 15 cent hike, or 3.5 percent, per 10 to 12 ounce equivalent, the company said.

Dunkin' Donuts retail coffee will rise by 35 cents, or 6 percent, per 10 to 12 ounce bag.

The increase brings the company's stated price for Folgers mainstream coffees at $1.65 per lb for the New York "C" arabica contract and $1.19 per lb for robusta futures that trade on the London International Financial Futures Exchange (Liffe).

Arabica coffee is typically the more expensive bean and used to make brewed coffee, while robusta beans are either processed into instant coffee or used to make a less expensive roasted blend.

The benchmark arabica coffee futures trading on ICE Futures U.S. tapped a 10-year high at $1.719 per lb during intraday trade Friday. The contract 1KCK8 settled Monday up 0.75 cent at $1.6755 per lb. Robusta futures trading on Liffe LKDK8 hit a 12-1/2-year peak at $2,813 per tonne last week but closed Monday's session up $15 at $2,750 per tonne.

There will be no price change to Folgers Singles, Cappuccino or Home Cafe; or Millstone. The gourmet coffees have different cost structures which causes price changes to occur at different times and according to a different scale, Brown said. (Reporting by Marcy Nicholson; editing by Marguerita Choy)