# EU deforestation law: fire on the horizon for soy traders | AFII

> An AFII analysis says the EU deforestation regulation poses material risk to investors in soy producers and traders. It finds that credit spreads do not yet reflect these risks, and it singles out Bunge as the most exposed large investment-grade issuer.

- Date: 2023-09-12 · published 2023-09-12T12:00:00.000Z
- Category: policy · region Global · magnitude low
- Page: https://feedsoft.ai/events/34128-eu-deforestation-law-fire-on-the-horizon-for-soy-traders-afii
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Financing costs for major soy traders could rise if the rules are enforced, which could eventually affect trader margins and the spread at which soy is handled.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2023-11-10 | [EU anti-deforestation law could affect 20% of Amazon soy](https://feedsoft.ai/events/33216-eu-anti-deforestation-law-could-affect-20-of-amazon-soy.md) | +2.4% | -1.8% |
| SOY | 2023-05-16 | [EU Approves Law for ‘Deforestation-Free’ Trade \| Human Rights Watch](https://feedsoft.ai/events/35971-eu-approves-law-for-deforestation-free-trade-human-rights-watch.md) | -4.2% | -0.1% |
| SOY | 2021-03-31 | [The EU and tropical deforestation](https://feedsoft.ai/events/48153-the-eu-and-tropical-deforestation.md) | +3.1% | +14.0% |
| SOY | 2025-11-27 | [EU backs another one-year delay for EUDR antideforestation law](https://feedsoft.ai/events/21989-eu-backs-another-one-year-delay-for-eudr-antideforestation-law.md) | -1.1% | -6.4% |
| SOY | 2025-01-31 | [Critical Moment for the EU Anti-Deforestation Law \| Human Rights Watch](https://feedsoft.ai/events/26536-critical-moment-for-the-eu-anti-deforestation-law-human-rights-watch.md) | +1.6% | -3.1% |
| SBM | 2023-09-01 | [Global impact of the EU’s anti-deforestation law](https://feedsoft.ai/events/34617-global-impact-of-the-eu-s-anti-deforestation-law.md) | -3.5% | -5.8% |
| SBM | 2023-11-10 | [EU anti-deforestation law could affect 20% of Amazon soy](https://feedsoft.ai/events/33216-eu-anti-deforestation-law-could-affect-20-of-amazon-soy.md) | +3.6% | -4.9% |
| SBM | 2025-06-13 | [The EU Deforestation Regulation](https://feedsoft.ai/events/24239-the-eu-deforestation-regulation.md) | -3.4% | -9.4% |

## Sources

- anthropocenefii.org: https://anthropocenefii.org/nature-loss/eu-deforestation-law-fire-on-the-horizon-for-soy-traders

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.