Coffee futures plummeted today: Arabica fell by 1.38%, and Robusta fell by 1.03%. The main reason is that the EU has cut the 1-year implementation period of the Deforestation Regulation (EUDR), which means that global coffee supply will remain abundant.
However, the fall is limited due to several support factors:
1. Brazil faces severe drought pressure - Minas Gerais (the world's largest Arabica production area) received only 49% of the historical average rainfall last week.
2. Inventory contraction - ICE Arabica stocks have fallen to a 1.75-year low (398,000 bags), and Robusta stocks have
View OriginalHowever, the fall is limited due to several support factors:
1. Brazil faces severe drought pressure - Minas Gerais (the world's largest Arabica production area) received only 49% of the historical average rainfall last week.
2. Inventory contraction - ICE Arabica stocks have fallen to a 1.75-year low (398,000 bags), and Robusta stocks have

