Coffee Prices Surge on EU Deforestation Rules

Coffee prices surged to their highest levels in the latest auction, driven by strong demand as buyers stockpile ahead of the European Union’s deforestation regulation, which threatens to tighten market supplies. In Kenya, the cost of Arabica surged to $276 for a 50-kilo bag, up from $251 in the previous sale, marking the highest value since the start of the crop year in October. On the global front, December futures for Arabica coffee reached a 13-year peak, while robusta recorded its highest level in a month. The sharp rally comes amid concerns over potential supply disruptions following the European Parliament’s moved to enforce stricter deforestation rules.

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