Vietnam Coffee-Price at record high, discounts shrink
 (Repeats to additional subscibers with no change to text) 
   * Discounts narrowed to $100-$120/tonne 
   * 2010/2011 coffee exports so far rise 5 pct y/y 
 (Recasts to add export prices, poll results, details) 
   By Ho Binh Minh 
   HANOI, March 1 (Reuters) - Robusta coffee in Vietnam edged up nearly 1 percent in the past week to a fresh all-time high, but failed to stir up trading on both export and domestic markets, traders said. 
   They said domestic market activities were slow, with only some exporters seeking to buy beans for loading, while farmers held back onto stocks as prices in Vietnam repeatedly surged to new record highs in recent weeks.  

   Exporters sought to buy at 45.6-46.0 million dong ($2,186-2,205) a tonne, up nearly 1 percent from 45.1-45.7 million dong last week in the key growing province of Daklak. 
   The all-time high of 46 million dong <VND=VN> is based on dong terms. Vietnam devalued its domestic currency by 8.5 percent against the dollar on Feb. 11.   
   Even Vietnam has harvested a larger crop, slow sales now means supply to the global market may drop in at least March and April, which could in turn boost robusta prices after they touched a 2-1/2-year high on Feb. 21.   
   Vietnam's 2010/2011 coffee output rose 2 percent from the previous season, slightly below past estimates, with some traders revising down estimates due to smaller beans.  

   "Several businesses are seeking to buy beans, while farmers are not selling much, so the buyers may compete by raising their buying prices," a trader at a foreign company in Ho Chi Minh City said. 
   He said buying prices in the Central Highlands may have been raised to above 46 million dong per tonne on Tuesday, as several exporters were in dire need to secure beans for loading. 
   Coffee prices in Vietnam, the world's second-largest producer after Brazil, closely track the London robusta futures market, where the May contract  ended up $45 at $2,384 a tonne on Monday, supported by strength in the arabica market.   
   Discounts to May contract narrowed to $100-$120 a tonne this week, from $140-$150 last Tuesday, placing Vietnamese robusta grade 2, 5 percent black and broken at $2,265-$2,285 a tonne, free on board, up from $2,240-$2,250 a week ago.   
     
   EXPORT FEE PROPOSAL 
   To ensure the sustainable development of the country's coffee industry, the Vietnam Coffee and Cocoa Association (Vicofa), has proposed to collect an export fee of $10 per tonne when global prices are above $1,800 per tonne, the Saigon Economic Times newspaper reported on Tuesday. 
   The funds would be re-invested in developing the coffee crop, Vicofa Chairman Luong Van Tu was quoted as saying at an industry conference in Ho Chi Minh City on Monday. 
   Extensive dry weather in Vietnam's Central Highlands coffee belt may affect the next 2011/2012 harvest, with output expected to fall, Tu was quoted earlier on Tuesday as saying in a state-run newspaper.   
   Coffee stocks are falling in Vietnam given a faster shipping pace while the volume of exportable beans may have fallen because of a higher ratio of small-sized beans, traders said. 
   Shipment between October last year and this February rose 5 percent from a year ago to 8.75 million bags, government statistics show .The shipment included stocks carried over from the 2009/2010 season. 
   Excluding the stock, which was estimated by traders at around 130,000 tonnes, or 2.17 million bags, the export volume represents about 36 percent of the 18.43-million-bag crop estimated by the International Coffee Organization.
 ($1=20,860 dong) (Reporting by Ho Binh Minh; Editing by Manash Goswami)    
Wednesday, 02 March 2011 12:28:22RTRS