HANOI/BANDAR LAMPUNG, (Indonesia): Domestic coffee prices in Vietnam inched up this week on a tightening supply of beans, traders said on Thursday, while premium to the September contract in Indonesia remained high.

Farmers in the Central Highlands, Vietnam’s largest coffee-growing area, were selling beans for 120,600-121,600 dong ($4.85-$4.89) per kg, compared to 118,500-119,300 dong a week ago.

Robusta coffee for November delivery rose to $4,926 per metric ton as of Wednesday’s close, its highest since 2008, LSEG data showed.

Traders offered 5% black and broken-grade 2 robusta at a premium of $20-$50 per ton to the November contract, compared to last week’s $250-$350 premium.

“Contract signing before the new crop is not as active as previous years, as exporting firms have become more cautious about their ability to meet the obligation,” said Nguyen Ngoc Quynh, deputy chief of Mercantile Exchange of Vietnam.

“Firms are under financial pressure as coffee prices are too high. There are also concerns about supplies of the upcoming harvest.” Meanwhile, robusta coffee beans in Indonesia’s Sumatra were offered at a $265 premium to the September contract, up from $200 premium last week, a trader said.

“Local price for September contract is high and we have to compete (with other traders) to buy,” a trader said. Another trader said the beans were offered at $240 premium to the November contract, unchanged from last week. Harvests are still ongoing in some areas in Lampung province, while in some areas the coffee plantations are starting to flower for the intercrop.