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Proforest and IDH published a discussion paper welcoming the EU deforestation regulation but warning it may divert deforestation-linked commodities to other export markets. It recommends recognising jurisdictions with credible plans to move to deforestation-free as transitional risk.
If deforestation-linked soy and palm oil are diverted away from the EU, other importers could see shifts in supply and price, though the effect on feed prices is likely modest.
proforest.netMar 17, 2022After 554 past neutral policy events, Soybeans moved a median +0.0% over 5 sessions (51% higher; middle half -1.4% to +1.6%), and +0.6% over 20.
After 513 past neutral policy events, Palm Oil moved a median 0.0% over 5 sessions (50% higher; middle half -1.6% to +1.4%), and -0.1% 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.
