ASIA COFFEE-Supplies remain scarce in Vietnam amid uncertainty around US tariff impact

By Phuong Nguyen

HANOI, April 3 (Reuters) - Supply of robusta beans remained scarce in Vietnam amid escalating tariff uncertainties globally and tightening supplies from farmers, while activities were muted in Indonesia for Eid al-Fitr, traders said on Thursday.

Farmers in the Central Highlands, Vietnam's largest coffee-growing region, sold beans COFVN-DAK at 132,500-133,600 dong ($5.1-$5.18) per kg.

With 46%, Vietnam will face among the highest reciprocal rates under U.S. President Donald Trump's sweeping new levies. In comparison, Vietnam's rivals, Brazil and Indonesia, will face lower tariff rates of 10% and 32%, respectively.

"It is still unclear how much would be imposed on Vietnamese beans," said a trader based in the coffee belt. "Domestic prices may still increase in the next trading sessions."

Another trader from the same region said some were still buying to fulfil the May deliveries obligation.

In the first quarter of this year, Vietnam exported $2.8 billion worth of coffee, an increase of 45% against the same period last year, the Mercantile Exchange of Vietnam (MXV) said in a note, citing data from Vietnam Coffee and Cocoa Association.

MXV said exporters should be cautious with holding beans for the long term.

"Current prices are still at their peak. The possibility of further increases cannot be ruled out," said Nguyen Ngoc Quynh, deputy head of the agency.

LIFFE robusta coffee for July LRCc2 closed at $5,400 per metric ton on Wednesday.

Traders also offered 5% black and broken-grade 2 robusta COFVN-G25-SAI at a discount of $150-$170 to the July LIFFE contract.

($1 = 25,790.0000 dong)