ASIA COFFEE-Domestic prices fall further in Vietnam this week amid tepid trade

By Phuong Nguyen and Mas Alini Arifin

HANOI, May 22 (Reuters) - Domestic coffee prices in Vietnam edged down further this week on thin trading activity and more supplies from the other robusta producers, Brazil and Indonesia, traders said on Thursday.

Farmers in the Central Highlands, Vietnam's largest coffee-growing region, sold beans COFVN-DAK at 124,500-125,200 dong ($4.79-$4.82) per kg, down from last week's 125,700-126,200 dong.

"Brazil and Indonesia both have started harvesting; more supplies will come although the beans are not abundant yet," said a trader based in the coffee belt.

"Vietnamese farmers still hold off selling with anticipation for higher prices but their remaining stockpile is not much."

The robusta coffee harvest in Brazil has reached 11%, according broker Hedgepoint Global Markets.

The U.S. Department of Agriculture's Foreign Agricultural Service in a report this week projected larger coffee crops in Vietnam and Indonesia.

"Vietnam 2025/26 total coffee production is projected at 31 million 60-kg bags as farmers increase production in response to higher prices. Robusta production is forecast at 30 million bags," it said.

LIFFE Robusta coffee LRCc2 fell 1% to $4,832 a ton as of Wednesday's close.

Traders offered 5% black and broken-grade 2 robusta COFVN-G25-SAI at a premium range of $50-$70 per ton to the July LIFFE contract.

Sumatra Robusta coffee beans were offered at the same price as the June contract, compared with $20 discount last week to the May contract "to adjust with the dropped price in London terminal," one trader said.

Another trader quoted $30 discount to the July contract, narrowing from last week's $70 discount "due to the drop of dollars amid quite stable local prices."

($1 = 25,972.0000 dong)