March arabica coffee (KCH26) on Monday closed down -1.50 (-0.39%), and January ICE robusta coffee (RMF26) closed down -93 (-2.04%).
Coffee prices fell to 1-week lows on Monday and settled lower. The outlook for abundant coffee supplies is weighing on prices after the European Parliament last Wednesday approved a 1-year delay to the deforestation law, keeping coffee supplies ample. The EU regulation, known as EUDR, aims to tackle deforestation in countries whose imports into the EU include key commodities such as coffee, soybeans, and cocoa. The delay of the EUDR will allow EU countries to continue importing agricultural products from regions in Africa, Indonesia, and South America where deforestation is occurring.
