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A Chain Reaction Research analysis describes an EU draft law that would require companies to show that products such as beef, palm oil, soy, cocoa, timber and coffee are not linked to deforestation. The proposal would apply to imports from countries with large tropical forests and would cover legally as well as illegally deforested land.
The analysis highlights business and investor risks along agricultural supply chains.
If enacted, sourcing restrictions on palm oil and soy from high-risk origins could widen origin premiums and reduce available supply for EU buyers.
chainreactionresearch.comOct 24, 2017After 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.
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.
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.
