ASIA COFFEE-Vietnam output expected to rise 10%-15% on good weather

By Phuong Nguyen and Mas Alina Arifin

HANOI, Oct 9 (Reuters) - Vietnam is expected to produce 10% to 15% more good quality coffee beans this harvest season thanks to favourable weather conditions, traders said on Thursday.

In the Central Highlands, its largest coffee-growing region, farmers sold beans COFVN-DAK at 114,000 dong to 115,000 dong ($4.33 to $4.36) per kg, compared with last week's range of 116,000 dong to 117,000 dong.

"So far, beans now are of good quality," said a trader based in the coffee belt. "Farmers have started to pick the beans, but the volume is still limited. Beans will come in bulk from next month."

Robusta coffee LRCc2 for January delivery settled up $98, or 2%, at $4,484 a metric ton on Wednesday.

Traders offered 5% black and broken-grade 2 robusta COFVN-G25-SAI at a discount of $50 per ton to the January LIFFE contract.

"Overseas buyers turned down this export quotation offer," the second trader said. "Activities remain quiet with foreign buyers staying cautious ahead of the main crop."

Vietnam exported 1.23 million metric tons of coffee over the January-September period, up 10.9% from a year earlier, government data showed. Export revenues over the period rose 62.2% to $7 billion. Exports in September alone stood at 81,000 tons, a year-on-year increase of 58.5%.

Indonesia's Sumatra robusta coffee beans were offered at $10 to $20 premium to the November and December contract, dropping from $60 premium last week, one trader said.

Another trader quoted $20 discount to the January contract.

Farmers said that the still-rainy weather may affect next year's output.

"Next year's coffee production will likely decrease by around 30% to 40% compared to this year," said Bukhori, a farmer based in the region.

($1 = 26,348.0000 dong)