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The EU Regulation on deforestation-free products (EUDR) is due to be adopted in spring 2023 and will bar companies from placing wood, palm oil, soy, coffee, cocoa, rubber and beef products on the EU market unless they are deforestation-free and legally produced. Large companies will have 18 months to comply after the regulation enters application, and small companies 24 months.
The briefing is an explainer on the rule.
Compliance requirements for traceability could tighten EU supply of palm oil and soy over time, which could firm prices for compliant product. The impact is still far off, so the near-term price effect is limited.
fern.orgMar 14, 2023After 1,905 past policy events, Soybeans moved a median +0.1% over 5 sessions (52% higher; middle half -1.4% to +1.8%), and +0.2% over 20.
After 734 past policy events, Soybean Meal moved a median -0.2% over 5 sessions (46% higher; middle half -1.9% to +1.6%), and -0.4% over 20.
After 1,570 past policy events, Palm Oil moved a median +0.2% over 5 sessions (54% higher; middle half -1.1% to +1.6%), and +0.5% 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.
