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An HCV Network article argues the proposed EU deforestation rules will benefit forests but could disadvantage low-capacity smallholder suppliers in the tropics. It warns that buyers may shift sourcing to lower-risk regions or substitute materials.
A Nature Positive Farming tool is promoted for engagement.
If buyers shift away from tropical smallholder supply, palm oil and soy availability into the EU could tighten, supporting prices, although the impact is speculative.
hcvnetwork.orgFeb 17, 2022After 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.
After 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.
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.
