HANOI/BANDAR LAMPUNG: Vietnam's domestic coffee prices fell further this week due to supplies from a new harvest, while trade in Indonesia remained lacklustre because of lower stocks, traders said on Thursday. Farmers in the Central Highlands, the country's coffee-growing capital, sold coffee at 31,500-32,000 dong ($1.37-$1.38) per kg, down from 32,700-33,400 dong last week.

"Harvest is gaining pace thanks to favourable weather and is expected to finish by the end of January, later than usual due to adverse weather this year," a trader based in the Central Highlands said.

"Currently, farmers have picked 20%-25% of their crop."

Another trader also based in the coffee belt said cherries looked good and the output drop would be smaller than previously expected.

March robusta coffee settled down $11, or 1%, at $1,334 per tonne on Wednesday.

Traders in Vietnam offered 5% black and broken grade 2 robusta at premiums of $110-$120 per tonne to the March contract, compared with last week's $100 premium.

Meanwhile, robusta beans from the province of Lampung on Indonesia's Sumatra island were offered at a $270 premium to the April contract, a trader in Lampung province said. The premium was at $200 to the January contract last week.

"Supply is declining... while demand is still normal," the trader said.

Another trader also based in the region quoted a $230 premium to the March contract, up from $200 a week ago.