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

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 ...