Coffee Prices Ease On EU Law Delay, Brazil Rains

Global  coffee prices eased this week following the extension of the European Union’s deforestation law and favourable rainfall in Brazil.

Arabica prices retreated from a 13- year high in December futures trading, while robusta declined from last week’s one-month peak.

Improved precipitation in Brazil and the delayed implementation of the EU’s Deforestation Regulation (EUDR) alleviated immediate supply concerns and reduced demand pressures in the market.

The EUDR, initially set to take effect next month, broadens its reach to commodities such as coffee, palm oil, and cocoa, heightening worries among traders over compliance challenges.

The regulation mandates that companies map their supply chains digitally, linking raw materials to specific plots, a requirement that poses significant obstacles for smaller, remote farms.

The EU Parliament’s decision to postpone the regulation’s enforcement provides more time for compliance, temporarily easing market anxieties.

Earlier, coffee prices had surged to record levels as buyers moved to stock – pile ahead of the impending regulation, which could restrict supply.

December Arabica futures had hit a 13-year high, while robusta saw its highest price in a month amid concerns over possible supply disruptions driven by the EU’s deforestation policies.