Coffee Prices Today, Nov 27: Market Cools Down as EU Agrees to Delay Deforestation Law

Coffee prices today reversed course, dropping on both major exchanges. The bullish momentum was halted after the European Parliament voted to delay the implementation of the EU Deforestation Regulation (EUDR) by one year, a move expected to keep global supply chains flowing more freely in the near term.

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Global Coffee Market Update

At the close of the trading session on November 26, futures prices corrected downward:

• Robusta (London): The rally paused. The January 2026 contract fell 1.0% ($46/ton), closing at $4,513/ton. The March 2026 contract decreased by 0.83% ($37/ton), settling at $4,377/ton.
• Arabica (New York): The market saw a slight correction. The December 2025 contract dropped 0.64% (2.70 US cents/lb) to 411.50 US cents/lb. The March 2026 contract fell 0.93% (3.60 US cents/lb), closing at 379.70 US cents/lb.

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Market Analysis: The EUDR Factor

The primary driver for today’s price drop was the news from Brussels. The European Parliament has voted to delay the EU Deforestation Regulation (EUDR), a policy that was previously causing supply anxiety in the market.

1. The One-Year Delay: The Parliament approved a 12-month postponement.

• Large Enterprises: Compliance is now required from December 30, 2026.
• Micro & Small Enterprises: Compliance starts June 30, 2027.

2. Impact on Supply: The EUDR aims to ban imports of commodities like coffee, cocoa, soy, and beef linked to deforestation. The delay is interpreted as a “bearish” factor for prices because it allows European buyers to continue importing beans from regions with higher deforestation risks (such as parts of Africa, Indonesia, and South America) for another year without facing immediate logistical hurdles or bans.

3. Mixed Reactions: While the delay relieves immediate pressure on traders, it has sparked controversy.

• Critics: Environmental groups and the “Business For Nature” coalition called the delay a “failure of political will.”
• Corporate Pushback: Major food giants like Nestlé, Ferrero, and Olam Agri had actually supported the original timeline, warning that a delay creates uncertainty and jeopardizes forest protection efforts.

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Weather & Origin Updates

Beyond the political news, weather remains a critical factor.

Brazil (Arabica): According to Climatempo, dry weather is expected to return to Brazil’s central coffee belt over the weekend. Weather disturbances in Bahia and Espírito Santo are easing. However, a cold front is forecast to approach the coast early next week, which could alter weather patterns in the Southeast interior.

Vietnam (Robusta): Adverse weather continues to impact Vietnam’s coffee belt, but there is optimism that the seasonal heavy rains will soon taper off.

• Domestic Sentiment: According to I. & M. Smith, the Vietnamese domestic market is inching up slightly. Farmers are reported to be in a stable financial position and are not under pressure to sell, despite the harvest being slower than usual due to the weather. This “holding” strategy is keeping trading volumes cautious and slow.

Uganda (Robusta): Harvesting has commenced in Uganda. The 2025-2026 production is forecast to remain stable at 6.7 million bags, with 5.7 million bags being Robusta, helping to supplement global supply.

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Domestic Price Trend (Vietnam)

Despite the correction in London, the domestic market in Vietnam remains resilient. Prices are holding steady or moving slightly higher as farmers limit sales, waiting for the weather to clear and harvesting to accelerate.