Robusta Coffee Gains; Vietnamese Supply Tight -- Market Talk

Robusta coffee futures are higher, with Liffe's March contract up 0.3% on the

day at $2,105/tonne. "Movement [of coffee] from Vietnam continues to be slow as domestic prices,

while improved, are not high enough to generate much in the way of product flows," says Sterling

Smith, a futures specialist at Citigroup. "Vietnamese producers are willing to hold beans, as when

Arabica supplies begin to tighten roasters may be inclined to blend more Robusta." Arabica is a more

expensive coffee bean, used in gourmet blends. The majority of robusta production is used for

intstant coffee powders.