EU Anti-Deforestation Law Stalls Soybean Market, Causes Price Uncertainty

Uncertainty surrounding the EU's anti-deforestation law has put the soybean meal market in limbo, as French animal feed makers call for a delay. This legislation, intended to ban imports linked to forest destruction, risks disrupting supplies and escalating costs, with significant impacts on the animal feed sector.

The uncertainty surrounding the European Union's anti-deforestation legislation has stalled the soybean meal market, French animal feed manufacturers reported on Thursday. They have urged lawmakers to postpone the bill to avoid potential disruptions in supply chains. Known as the EUDR law, this ban targets imports of commodities like palm oil, soybeans, and cocoa linked to deforestation.

While the European Commission has proposed a milder version to start on December 30, member states push for another year's delay, creating a divide among EU institutions. As a result, French animal feed makers like SNIA express concern over future soybean supplies and industry repercussions.

Spot prices have soared due to the looming deadline, with soybean meal and rapeseed meal prices experiencing significant hikes. Contracts for 2026 remain likely, but major importers hesitate to commit due to ongoing uncertainty, according to industry leaders.

(With inputs from agencies.)