Europe cash coffee: Brazil, Colombian sales scarce

* Brazil differentials remain firm

* Activity in Vietnam seen picking up

LONDON Jan 27 (Reuters) - Purchases of Brazilian and Colombian coffee were minimal on Europe's cash coffee market this week, with limited availability supporting firm differentials, dealers said on Friday.

"Demand is good but availability is limited," said a European trader.

Brazil is between crops and its coffee harvest starts from May.

Dealers said farmers are well financed and able to wait in the hope of higher prices.

"Farmers are holding back on sales," said the trader.

Brazil MTGB Fine for Feb/March shipment was at 8 cents over ICE arabicas inline with last week.

Meanwhile, Colombia, the world's top supplier of high quality beans, continues to see below-average production.

Colombian exports of specialty coffee beans are expected to remain flat in 2012 due to lower national production and crimped demand in Europe, experts and officials at the coffee growers federation said.

"Colombia aren't shipping much, everyone is talking the crop down," however, there should be enough Central American coffee to replace the shortfall in Colombian milds, a European dealer said.

Colombian Excelso beans for February/March shipment eased to 31 cents over New York, against 30 cents over last week.

VIETNAM PICKS UP

Dealers said activity was expected to pick up from top robusta producer Vietnam, putting downward pressure on differentials.

Vietnam Grade 2 robusta for February onwards shipment was offered at a wide range of differentials from level money to $70 over nearby London robusta contracts <0#LRC:>, compared with $70 over quoted last week.

"In light of Indonesia prices ahead of the crop in April and that Uganda Screen 15 is almost sold out, that's the reason why the Vietnamese are holding back," said a European dealer.

New crop Indonesian differentials were quoted at $200 above the London market, while old crop was quoted at a nominal $450 above the market.

Certified coffee stocks held in NYSE Liffe nominated warehouses fell to 235,840 tonnes as of Jan. 23, from 246,580 tonnes on Jan. 9, exchange data showed.

Dealers said the drawdown in certified stocks was partly in anticipation of Vietnam shutting down for its Tet holiday. (Reporting by Sarah McFarlane)