By Khanh Vu and Mas Alina Arifin
HANOI/BANDAR LAMPUNG (Reuters) - Coffee prices in Vietnam edged up this week on scarce supplies, but traders said they would not climb further ahead of the new harvest next month.
Farmers in the Central Highlands, the country's largest coffee growing area, offered coffee in a range of 33,000 dong -33,500 dong ($1.42-$1.44) per kg, compared with 32,500 dong-33,300 dong a week earlier.
"Prices have risen slightly because inventory has run almost empty, while several exporters still need beans to fulfil their signed contracts," a trader based in the province of Dak Lak said.
However, domestic prices are not likely to rise further as the 2018-19 harvest season will begin soon.
"We expect to see a bumper harvest," the trader said. "But the harvest won't peak until early December."
Exporters offered Vietnam's 5-percent black and broken grade 2 robusta at around $50 discount to London's November contract, compared with $40-$70 a week ago, according to traders.
Meanwhile, in Indonesia, trading volumes declined sharply as stocks began to dry up with the harvest there approaching its end.
Premiums for the grade 4 defect 80 robusta in the province of Lampung were at $80 to the November contract, narrowing from $90 a week earlier, a local trader said.
"This margin is expected to remain stable until mid-October," the trader said.
Another trader said premium stayed flat from last week at $130-$140 to the November contract and that traded volumes declined by a half from a week earlier.
($1 = 23,276 dong)
(Reporting by Khanh Vu in Hanoi and Mas Alina Arifin Bandar Lampung; Editing by Subhranshu Sahu)
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