EU proposal to delay anti-deforestation rule bullish for palm oil

Published 2024년 10월 7일

Tridge summary

The European Commission has proposed a delay of 12 months in the implementation of the EU's anti-deforestation rules (EUDR) on agricultural imports, ending the 2024 deadline for large companies to 2025 and small enterprises to June 2026. This move is expected to boost the palm oil market, as it will likely increase demand from the EU. The EUDR regulations require companies to prove that their supply chains do not contribute to deforestation or face heavy fines and trade bans. The proposal is due to concerns about compliance from global partners and European stakeholders. The EU is the world's third largest palm oil importer.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

A proposed 12-month delay in implementing the EU’s anti-deforestation rules (EUDR) on agricultural imports is bullish for palm oil markets as it would likely drive higher-than-expected demand from the bloc, palm oil traders and analysts said. On Oct. 2, the European Commission proposed postponing an end-2024 deadline for curbing imports of key commodities linked with deforestation to the end of 2025 for large companies and to June 30, 2026 for micro- and small enterprises. The EU’s palm oil buying is currently a lot lower than usual for this time of the year, but if the EU goes ahead with the delay it could open the floodgates for EU buyers to place orders for 2025, said Lingam Supramaniam, director with Malaysian vegetable oil brokerage Pelindung Bestari. The incoming EUDR regulations, proposed in 2022, include diligence requirements on seven key agricultural commodities — cattle, cocoa, coffee, rubber, palm oil, soybean and wood derivatives — to prove that their supply chains ...

Source: Hellenic Shipping News