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The Council and European Parliament reached a provisional deal on EU rules requiring mandatory due diligence for operators who place or export palm oil, beef, timber, coffee, cocoa, rubber and soy in the EU market. The cut-off date is 31 December 2020, and the agreement still needs formal adoption by both institutions.
A review in two years will consider adding other products.
Mandatory deforestation checks on EU imports of soy and palm oil add compliance cost and could reduce EU demand for non-verified supply. This is a structural factor that could weigh on those oilseed prices over time.
consilium.europa.euDec 6, 2022After 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.
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.
