◂ Event Timeline

Apr 21, 2017POLICYEU

Parliament resolves to tackle EU’s role in driving illegal deforestation through imports of agro-commodities

Earthsight reports that the EU Parliament's 4 April resolution calls for action on tropical deforestation, including regulations addressing the EU's role in importing agricultural commodities grown on illegally deforested land. The resolution focused mainly on palm oil but also covered soy and beef.

WHY IT MATTERS

Possible EU regulation of imports linked to deforestation could curb demand for palm oil, soy and beef, a bearish signal for palm oil and soybean meal flows into Europe, though no binding measure exists yet.

AFFECTSPALMOIL▼SOY▼SBM▼

SOURCE
earthsight.org.ukDesign, build byApr 21, 2017

Price reaction & history

PALMOIL▼bearishSO FAR1d +0.3%5d +0.3%20d +4.0%

After 400 past bearish policy events, PALMOIL moved a median -0.0% over 5 sessions (49% higher; middle half -1.3% to +1.1%), and +0.2% over 20.

Nov 15, 2022European Parliament pass bill to ban imports of deforestation-linked commodities | NGIS-3.2%
Nov 10, 2020The European Parliament takes a bold stance on legislation to tackle imported deforestation - Fern+3.2%
Nov 16, 2021EU Targets Key Commodities in New Rules to Prevent Deforestation - Bloomberg+1.7%
Apr 20, 2023EU Regulation on deforestation-free products: What comes next for importers / exporters of agricultural commodities? | BLOMSTEIN-1.0%
Jan 16, 2023MEPs approve Parliament/Council agreement on ‘imported deforestation’ EU regulation | AGENCE EUROPE+0.7%

SOY▼bearishSO FAR1d +0.4%5d -0.1%20d -0.2%

After 369 past bearish policy events, SOY moved a median -0.2% over 5 sessions (46% higher; middle half -1.7% to +1.8%), and +0.8% over 20.

Nov 15, 2022European Parliament pass bill to ban imports of deforestation-linked commodities | NGIS-0.3%
Nov 10, 2020The European Parliament takes a bold stance on legislation to tackle imported deforestation - Fern+4.4%
Nov 16, 2021EU Targets Key Commodities in New Rules to Prevent Deforestation - Bloomberg+1.4%
Apr 20, 2023EU Regulation on deforestation-free products: What comes next for importers / exporters of agricultural commodities? | BLOMSTEIN-4.7%
Jan 16, 2023MEPs approve Parliament/Council agreement on ‘imported deforestation’ EU regulation | AGENCE EUROPE-3.1%

SBM▼bearishSO FAR1d +0.6%5d +0.8%20d -0.1%

After 223 past bearish policy events, SBM moved a median -0.3% over 5 sessions (45% higher; middle half -2.2% to +1.2%), and -0.6% over 20.

May 2, 2017FiBL - Report on the EU Common Agricultural Policy and deforestation-1.5%
Jun 3, 2021EU plans mix of mandatory and voluntary rules to tackle deforestation | Euractiv-1.8%
May 4, 2017Drawing out links between the Common Agricultural Policy, soy, and deforestation in South America - Fern-0.3%
Mar 13, 2024EU attempts to smooth South American complaints over deforestation policy-0.7%
Mar 5, 2024EUDR: Is the food industry ready to prove its supply chains are deforestation-free?+0.6%

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.

PALMOIL · GP ▸

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SOY · GP ▸

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