Vietnam Coffee-Rain threatens supply squeeze, selling slows
   * Rain prevents coffee harvesting
   * Exporters seen selling slowly
   
   By Ho Binh Minh
   HO CHI MINH CITY, Nov 2 (Reuters) - Vietnamese exporters slowed sales of fresh beans as recent showers in the Central Highlands coffee belt have stirred concern about a supply shortage for shipments next month, traders said on Tuesday.
   Exporters were reluctant to sell forward shipments because prices could rise, they said, even though London robusta futures are already around two-year highs.
   "Nobody in Vietnam dares to sell now, because if they do, they have to start buying on domestic markets, and local prices will rise when many buy, which will give them losses," said an exporter in the key growing province of Daklak. 
  

   Prices in Vietnam closely track the London robusta futures market, where the January contract  hit a two-year high of $2,010 a tonne on Monday before ending $42 lower at $1,928.  
   The exporter said London prices could rise further because of thin stocks and concern rain could delay Vietnam's harvest.
   "Rains have been falling and farmers cannot go to pick cherries and dry them," he said by telephone from Buon Ma Thuot, the capital city of Daklak, producer of a third of Vietnam's coffee.
   "If rains like this continue for the next 10 days, it would be dangerous for the supply next month," he said, adding that quality had been fine so far.
   Strong rain was expected to hit some areas on Tuesday in the Central Highlands beside the central provinces of Khanh Hoa and Phu Yen where there has been flooding in recent days after heavy downpours, the national weather centre reported.
   On Monday, when prices in London were near a two-year high, exporters sold a little, a trader in Ho Chi Minh City said.
   "As prices rise, exporters often sell at a wider discount, and farmers also quicken the harvesting, but supply remains thin while cloudy weather in the key growing region may bring more rains," he said.
   Exporters offered robusta beans grade two, 5 percent black and broken, at discounts of $130-$140 a tonne to London's January contract  on Tuesday, down from $150-$160 a tonne on Monday but on par with the range a week ago.
   Foreign buyers sought to buy at discounts of $170 a tonne, against $150-$170 last Tuesday. Robusta grade 2 stood at $1,758-$1,798 per tonne, free-on-board basis, up from $1,693-$1,733 last Tuesday.  
   Robusta prices in the key growing province of Daklak eased to 33,100 dong ($1.70) per kg on Tuesday, from 33,800 dong on Monday, which was a new 25-month high. Prices in Vietnam earlier hit a 25-month high last Thursday at 33,300 dong.  
   Higher prices have encouraged growers to speed harvesting, but rain remained a major risk for their drying process, traders said. It takes seven to 10 days for the cherries to be dried, bagged and delivered to Saigon Port for loading.
   The rainy season often ends in the middle of October, allowing farmers to start harvesting in the Central Highlands, which produces 80 percent of Vietnam's coffee.
   Vietnam's coffee sales have also been slow because exporters are waiting for a government decision on stockpiling beans , expected this month.
   The country will stockpile beans every year to help prevent prices from falling, an industry official said on Saturday.  (Editing by Clarence Fernandez)