ASIA COFFEE-Tepid trade in Vietnam on low supplies, Indonesia premiums fall

By Phuong Nguyen and Mas Alina Arifin

HANOI, Aug 28 (Reuters) - Trading activity in Vietnam was sluggish this week amid low supplies at the end of the crop season and soft demand, while premiums in Indonesia fell as weather conditions improved in the coffee-growing area, traders said on Thursday.

In the Central Highlands, Vietnam's largest coffee-growing region, farmers sold beans COFVN-DAK at 122,000-123,700 dong ($4.64-$4.70) per kg, compared with last week's 121,000-123,000 dong.

According to traders and farmers, the trees were unharmed from the recent Typhoon Kajiki that swept through the country's central part and killed seven people.

Vietnam's new crop will officially start from October, but new beans will only arrive from late November.

"Supplies are running low with virtually no deals. Many have to turn to Brazil or Indonesia for beans if they need to fulfil their contracts," said a trader based in the coffee belt.

"However, some buyers have already offered price for December deliveries from 100,000 dong per kg," the trader added.

Robusta coffee LRCc2 settled up $188, or 4%, at $4,878 a metric ton on Wednesday.

"We've entered the storm season. It will be an issue if it rains from late October," a second trader, also based in the coffee growing region, said.

In Indonesia, Sumatra robusta coffee beans were offered at $30 premium to the September-October contract, down from $230 premium last week to the November contract.

Another trader quoted beans at $50 premium to the November contract, to adjust with the London terminal.

A coffee farmer from Liwa, West Lampung, said that the current weather was rainy, although not too often, which was good for the growth of coffee fruit.

Currently, 60-70% of the Indonesian stock was still in the farmers' warehouses, the farmer said.

($1 = 26,300.0000 dong)