ASIA COFFEE-Trade slows in Vietnam, supplies build up in Indonesia

By Phuong Nguyen and Mas Alina Arifin

HANOI, June 5 (Reuters) - Coffee trading was sluggish in Vietnam this week, with domestic prices falling further following global cues and rising supplies from other robusta producers, while prices flipped to premium in Indonesia amid ongoing harvest.

Farmers in the Central Highlands, Vietnam's largest coffee-growing region, sold beans COFVN-DAK at 113,500-114,000 dong ($4.35-$4.37) per kg, lower than the 121,700-122,300 dong range a week ago.

"Activities are not very upbeat," said a trader based in the coffee belt.

"New supplies from Indonesia, Brazil and now Uganda are coming. Beans shortage is not really an issue at the moment."

Traders expect the prices to fall further in the coming weeks.

The conilon (robusta) harvest in Brazil is progressing well, with the weather generally favourable and a large crop widely anticipated.

LIFFE robusta coffee LRCc2 settled up $8, or 0.2% at $4,345 a ton on Wednesday after hitting the lowest level in 9-1/2 months the day before, LSEG data showed.

Traders offered 5% black and broken-grade 2 robusta COFVN-G25-SAI in the range of $40-$80 per ton premium to the September LIFFE contract.

Indonesian Sumatra robusta coffee beans were offered at an $80 premium this week to the July-August contract, one trader said, adding that "beans have been harvested in several areas".

Another trader quoted a $80 premium to the September contract, compared with a $30 discount two weeks ago to the July contract.

($1 = 26,097.0000 dong)