By Khanh Vu and Mas Alina Arifin
HANOI/BANDAR LAMPUNG (Reuters) - Domestic coffee prices rose further in Vietnam this week as traders hoarded supplies on expectations of higher prices, while trade in Indonesia remained muted.
Farmers in the Vietnam sold coffee at 33,800-34,000 dong ($1.46) per kg on Thursday, up from 32,600-33,500 dong a week earlier.
"Many domestic traders are increasing their purchases of the newly harvested beans, giving an upward push to domestic prices," a trader based in Dak Lak province said.
The trader said the speculation followed clearer forecasts that output would fall by 15-20 percent during the 2018-19 crop year, mostly due to unfavourable weather conditions.
"Now that the harvest is about to end, a forecast about a drop in output appears to have become true," said a second Dak Lak-based trader.
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Vietnam is the world largest robusta producer. Farmers have picked nearly 85 percent of the 2018-19 harvest, which is expected to end mid-January.
Traders in Vietnam offered 5 percent black and broken grade 2 robusta at a $30-$50 per tonne discount to the March contract, compared with a $40-$50 discount last week.
In Indonesia, no trade was recorded this week due to a holiday.
Grade 4 defect 80 robusta was at a premium of $20-$30 to the March contract, unchanged from last week, a trader in the province of Lampung said.
Another trader in the province said Indonesian robusta was offered with $50 premium.
($1 = 23,220.0000 dong)
(Reporting by Khanh Vu and Mas Alina Arifin; editing by Richard Pullin)