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HANOI: Coffee trading in Vietnam was sluggish this week due to low stockpiles, while Indonesian premiums narrowed as a progressing harvest increased supply, traders said on Thursday. Farmers in the Central Highlands, Vietnam's largest coffee-growing area, sold coffee at 33,300-33,500 dong ($1.44-$1.45) per kg, compared with last week's 33,000-33,500 dong range.

"Low stocks hit transactions. Almost no deals have been struck in the past weeks," said a trader based in the Central Highlands province of Dak Lak. "On the other hand, steady rains are providing enough water for the upcoming crop, with harvest season expected to start in late November or early December."

Another trader also based in the coffee belt said the output of the upcoming crop season would be 3% lower than the previous one, at around 28 million 60-kg bags.

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