ASIA COFFEE-Domestic prices edge up in Vietnam on global cues, discounts widen in Indonesia

By Phuong Nguyen and Mas Alina Arifin

HANOI, March 6 (Reuters) - Domestic prices edged up in Vietnam this week following an increase in global prices and modest supplies, while discounts widened in Indonesia, traders said on Thursday.

Farmers in the Central Highlands, Vietnam's largest coffee-growing region, sold beans COFVN-DAK at 133,000-134,000 dong ($5.22-$5.26) per kg, up from last week's 130,500 dong.

LIFFE robusta coffee for May LRCc2 closed at $5,643 per metric ton on Wednesday.

"Supplies are modest now as Brazilian farmers are holding onto beans due to the depreciation of the Real, while Vietnamese farmers are still looking forward to 140,000 dong per kg to sell," a trader based in the coffee belt said.

"However, demand is also not as strong as a few weeks ago."

Another trader said some parts of the Central Highlands recorded unusual rains in the middle of the dry season.

Traders also offered 5% black and broken-grade 2 robusta COFVN-G25-SAI at a discount of $280-$320 to the May LIFFE contract.

The Mercantile Exchange of Vietnam in a note this week recommended investors avoid stockpiling beans for future trading and focus on buying for immediate purposes to optimize profits and avoid risks.

Vietnam exported 303,000 metric tons of coffee in the January-February period, down 23.5% from the same period last year, government data showed. However, coffee exports in February rose 6.6% from the corresponding month in 2024.

Meanwhile, Indonesia exported 18,449.45 metric tons of Sumatran robusta coffee beans from the province of Lampung in January, surging from 3,314.88 tons in the same month last year, official data showed.

Sumatran beans were offered at a $180-$200 discount this week, widening from a $30-$70 discount last week to the April contract.

Another trader said for the May contract, the beans were quoted at a $200 discount, compared with a $30 discount last week, due to higher London prices.

($1 = 25,460.0000 dong)