A law firm comparison of new anti-deforestation measures adopted or proposed by the US, EU and UK in late 2021. All three prohibit certain commodities produced on illegally deforested land from entering their markets, with differences in scope and implementation.
Differing market access rules across the US, EU and UK could shift trade flows of soy, palm oil and cattle products, but the measures are still in process and their near-term price effect is limited.
After 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.