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The EU formally adopted a law requiring EU-based companies to ensure that seven commodities, including cattle, soy and palm oil, were not produced on land deforested after December 31, 2020. The regulation also requires compliance with local laws covering land rights, labor and indigenous consent, and companies must trace commodities back to their origin.
The traceability and legal compliance requirements raise costs for EU importers of soy and palm products, which can reduce demand for non-verified origins and pressure prices. Beef and leather flows may also face added friction.
hrw.orgLuciana Téllez Chávez Senior Researcher, Environment, Human Rights lucianatellez lucianatellezMay 16, 2023After 369 past bearish policy events, Soybeans moved a median -0.2% over 5 sessions (46% higher; middle half -1.7% to +1.8%), and +0.8% over 20.
After 400 past bearish policy events, Palm Oil moved a median -0.0% over 5 sessions (49% higher; middle half -1.3% to +1.1%), and +0.2% over 20.
After 30 past bearish policy events, Live Cattle moved a median -0.8% over 5 sessions (43% higher; middle half -2.0% to +1.1%), and +0.9% 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.
