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Freshfields outlines unresolved differences between the European Parliament, Council and Commission over the draft EU Deforestation Regulation after the first trilogue in late September 2022. Key disputes include which commodities are in scope, with Parliament proposing to add corn, poultry and pork to the original list.
If corn, soy and poultry are covered, EU-bound feed ingredient sourcing would face deforestation due diligence, adding compliance costs and possibly shifting supply toward non-EU buyers.
freshfields.comKieran Watkins, Simon Duncombe, James Raeside, Marlen Vesper-Gräske, Léa BareilOct 13, 2022After 356 past bullish policy events, Soybeans moved a median +0.1% over 5 sessions (53% higher; middle half -1.2% to +2.3%), and -0.9% over 20.
After 318 past bullish policy events, Corn moved a median -0.1% over 5 sessions (48% higher; middle half -1.4% to +1.5%), and -0.2% over 20.
After 548 past bullish policy events, Palm Oil moved a median +0.4% over 5 sessions (61% higher; middle half -0.7% to +2.1%), and +0.9% over 20.
Not enough comparable past events yet for a historical read.
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.
