ASIA COFFEE-Vietnam trading muted ahead of new harvest season; favourable weather in Indonesia

By Phuong Nguyen and Mas Alina Arifin

HANOI, Sept 25 (Reuters) - Trading activities remained low in Vietnam ahead of new crop season coupled with limited beans supplies, while the weather has turned favourable for the second stage development of the coffee trees in Indonesia, traders said on Thursday.

In the Central Highlands, Vietnam's largest coffee-growing region, farmers sold beans COFVN-DAK at 114,000-114,500 dong ($4.32-$4.33) per kg, compared with last week's 115,000-117,000 dong.

"Trade stayed quiet this week as we are approaching the end of the current harvest with both traders and farmers being cautious amid the volatility of the prices," said a trader based in the coffee belt, noting some farmers have started to sell fresh beans, but supplies were still limited.

Heavy rains were forecast in the upcoming days in the coffee area.

"Although rains at the moment are not so worrisome, but we have entered the stormy season and weather situation over the past years has become more unpredictable," the trader said.

Robusta coffee LRCc2 for January deliveries settled down $67, or 2%, at $4,185 a metric ton on Wednesday.

The trader offered 5% black and broken-grade 2 robusta COFVN-G25-SAI at a premium of $160-$175 per ton to the January LIFFE contract.

While another trader offered 109,000 dong and 107,000 dong per kg for deliveries in November and December respectively.

In Indonesia, Sumatra robusta coffee beans were offered at $50 premium to the November and December contract, up from $40-$45 discounts last week to the same contracts, a trader said.

Another trader said beans were offered at $10 premium to the November contract, fell from $50 premium last week due to the rise on London terminal and the U.S dollar.

A coffee farmer in Lampung said current weather condition was quite favourable for flower and cherry growth as trees had entered the second stage of flowering.

($1 = 26,408.0000 dong)