# Beyond forests: traders face EU regulatory risks from soy expansion in Brazil - Insights - Trase

> Trase analysis finds that soy traders face more EU regulatory exposure from conversion of Brazilian savannah and grassland than from forest clearing. Only 17% of recent soy expansion into natural habitats was into forests. The EU is due to consider broadening the regulation to other wooded lands by September 2024 and to grasslands by September 2025.

- Date: 2023-03-21 · published 2023-03-21T12:00:00.000Z
- Category: policy · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/36901-beyond-forests-traders-face-eu-regulatory-risks-from-soy-expansion-in-brazil
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

If the EU broadens its scope to Cerrado and Pampa land, a larger share of Brazilian soy could face compliance costs or exclusion from EU markets. That could shift soy flows and support EU-compliant soy premiums.

## Read by commodity

- SOY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2025-05-13 | [Beyond the Forest: Navigating the EU’s Deforestation Rules \| Global Financial Regulatory Insights](https://feedsoft.ai/events/24696-beyond-the-forest-navigating-the-eu-s-deforestation-rules-global-financial.md) | -1.4% | -0.8% |
| SOY | 2022-03-15 | [Strengthening the EU regulation on deforestation-free products - Insights - Trase](https://feedsoft.ai/events/42298-strengthening-the-eu-regulation-on-deforestation-free-products-insights-trase.md) | +0.2% | -1.9% |
| SOY | 2023-09-26 | [Doubts over compliance with Brazil’s Forest Code put soy trade to EU at risk - Press Release - Trase](https://feedsoft.ai/events/34129-doubts-over-compliance-with-brazil-s-forest-code-put-soy-trade-to-eu-at-risk.md) | -1.6% | -0.8% |
| SOY | 2021-04-13 | [Trase data highlights EU's role in deforestation - Insights - Trase](https://feedsoft.ai/events/47631-trase-data-highlights-eu-s-role-in-deforestation-insights-trase.md) | +4.9% | +17.2% |
| SOY | 2023-09-01 | [EU's Deforestation Regulation poses risks for companies and investors \| IFR](https://feedsoft.ai/events/34124-eu-s-deforestation-regulation-poses-risks-for-companies-and-investors-ifr.md) | -0.8% | -6.2% |

## Sources

- trase.earth: https://trase.earth/insights/beyond-forests-traders-face-eu-regulatory-risks-from-soy-expansion-in-brazil

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