ASIA COFFEE-Domestic prices rise in Vietnam, supplies scarce in Indonesia

By Phuong Nguyen and Mas Alina Arifin

HANOI, March 20 (Reuters) - Coffee prices edged up in Vietnam following a rise in London terminal, while Indonesian prices flipped back to discounts due to limited supplies, traders said on Thursday.

Farmers in the Central Highlands, Vietnam's largest coffee-growing region, sold beans COFVN-DAK at 133,700-135,000 dong ($5.23-$5.28), up from last week's 131,000-133,000 dong.

"Some farmers already released beans at this price to cap the gain. However, some who are not short on cash chose to keep the beans for better profit," said a trader based in the coffee belt.

"But the remaining beans in farmers' stock are not many," he added.

Another trader said supplies would stay that tight until harvest in Indonesia.

"Firms are struggling to buy at the moment. Last year, many could buy from Brazil to compensate for the shortage but this year, supplies there are tight as well," the second person said.

LIFFE robusta coffee for May LRCc2 closed at $5,527 per metric ton on Wednesday.

Sumatra robusta coffee beans were offered at a $100-110 discount to the April contract this week, a decrease from $80 premium a week ago, "as beans are still scarce," a trader said.

Another trader said that beans were offered at $100 discount this week, also citing scarcity of beans.

($1 = 25,545.0000 dong)