ASIA COFFEE-Vietnam domestic prices edge higher on supply concerns; Indonesian premium narrows

By Khanh Vu and Mas Alina Arifin

HANOI, Aug 1 (Reuters) - Domestic coffee prices in Vietnam rose slightly on Friday on supply concerns, as global prices recovered from last week's 16-month low.

Farmers in the Central Highlands, Vietnam's largest coffee-growing region, sold beans COFVN-DAK at 99,500-99,700 dong ($3.80-$3.81) per kg, up from last week's 95,700-96,200 dong.

Traders say concerns about a possible dry weather spell in the region could have given domestic prices a boost.

"Farmers had refrained from selling their beans, waiting for more gains in price, which, if it surpasses 100,000 dong per kg, could trigger an increase in supplies," a trader based in Dak Lak province said.

Robusta coffee LRCc2 last traded at $3,331 a metric ton, up from a 16-month low of $3,166 last week.

Traders said they are cautious as they wait for the Trump administration's final decision on the U.S.'s tariff on coffee from top producer Brazil.

In Indonesia, Sumatra Robusta coffee beans for September/October contract were offered at $140-150 premium, a decline from $160 premium last week.

Another trader said the beans were offered at $100 premium for November contract, compared with a $150 premium last week.

A coffee farmer there said harvest is ongoing, while some plantations are currently in the first fruiting stage.

($1 = 26,180 dong)