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The European Commission plans to introduce legislation requiring companies to carry out due diligence on environmental impacts in their supply chains. The measures aim to reduce deforestation linked to EU imports of cattle, soy and palm oil.
Global Canopy said the effectiveness will depend on the detail of the rules and on company monitoring.
If enacted, mandatory due diligence could tighten sourcing requirements for soy and palm oil imports into the EU, though the rules are still at the proposal stage with no near-term price effect.
globalcanopy.orgMay 4, 2020After 554 past neutral policy events, SOY 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, PALMOIL 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.
