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A Squire Patton Boggs legal note says companies are preparing for the EU Deforestation Regulation, which takes effect 30 December 2024 for large operators and June 2025 for micro and small exporters. Seven commodities including cattle, cocoa, coffee, palm oil, rubber, soy and wood are covered, with fines of up to 4% of EU turnover.
Required plot-level geolocation and proof of no deforestation since 2020 could restrict eligible soy, palm and cattle supply into the EU. Price effects depend on how strictly the rules are enforced.
natlawreview.comSarah K. RathkeNov 14, 2023After 356 past bullish policy events, Soybeans moved a median +0.1% over 5 sessions (53% higher; middle half -1.2% to +2.3%), and -0.9% over 20.
After 548 past bullish policy events, Palm Oil moved a median +0.4% over 5 sessions (61% higher; middle half -0.7% to +2.1%), and +0.9% over 20.
After 102 past neutral policy events, Live Cattle moved a median +0.6% over 5 sessions (63% higher; middle half -0.7% to +1.2%), and +1.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
