ASIA COFFEE-Vietnam supplies decline, Indonesia prices 'unpredictable'

By Phuong Nguyen and Mas Alina Arifin

HANOI, Feb 20 (Reuters) - Robusta supplies in Vietnam dwindled this week after robust sales in the past two weeks, as farmers were reluctant to sell in anticipation of higher prices, while prices were "unpredictable" in Indonesia, traders said on Thursday.

Farmers in the Central Highlands, Vietnam's largest coffee-growing region, sold beans COFVN-DAK at 132,200-133,500 dong ($5.18-$5.23), flat from last week's 132,000-133,000 dong.

LIFFE robusta coffee for May LRCc2 settled up $25 at $5,746 per metric ton as of Wednesday's close.

"Farmers are reluctant to sell, again. Some are expecting the prices to climb to 140,000-150,000 dong per kg," said a trader based in the coffee belt.

"But Indonesia harvest season is coming soon, given the remaining beans from current crop are still abundant, farmers will eventually have to increase sales."

Another trader from the same region said the weather was still favourable and not too dry for the trees.

A Reuters poll released last week forecast that output of the next crop would reach 29 million 60-kg bags, up from 28 million in 2024/25.

Traders also offered 5% black and broken-grade 2 robusta COFVN-G25-SAI at a discount of $480-$500 to the May LIFFE contract.

In Indonesia, Sumatra robusta coffee beans to the March and April contract were offered at $310-$400 discount this week, compared to $350-$370 discount range a week ago.

"Prices are quite unpredictable, as we heard the coming yields from Brazil and Vietnam are decreasing," a trader said.

Another trader said beans were quoted $380-$400 discount to the May contract, compared to a $350 discount last week.

($1 = 25,520.0000 dong)