How an Israel-Hamas Conflict Could Affect Global Grain and Commodity Markets

As of September 2024, the ongoing war between Russia and Ukraine continues to significantly
disrupt global trade, especially in the grain trade sector. Ukraine, one of the world’s largest
exporters of wheat, corn, and maize, has seen its agricultural production destabilized. The
conflict has led to both shortages and price volatility in global markets. When the Black Sea
Grain Initiative was terminated in July 2023, the situation worsened. This crucial agreement,
which allowed the export of Ukrainian grains through the Black Sea, was essential to
preventing a global food crisis. Without it, Ukrainian grain exports have dropped sharply,
increasing food insecurity in regions that rely on these imports, such as Africa and the Middle
East.

The ongoing sanctions against Russia have also affected supply chains for key commodities like
fertilizers and metals. While the international markets are trying to adjust and find alternative
sources, Russia remains a major player in the agricultural inputs sector, especially fertilizers. As
a result, trade restrictions have driven up prices for these essential agricultural materials,
complicating production in other parts of the world.

At Nera Company, our experience in this sector allows us to offer competitive prices despite
these challenges. Our focus on ensuring timely deliveries of high-quality grains, such as maize,
soja, and wheat, ensures that we continue to serve our clients with reliability and customer
satisfaction. With our bonded warehouse and secure logistics, we help our partners and
buyers, including those in China, navigate these turbulent times with confidence.

How an Israel-Hamas Conflict Could Affect Global Grain and Commodity Markets.-

While the conflict between Israel and Hamas hasn’t yet had the same direct impact on global
grain trade as the Ukraine war, a potential escalation could significantly affect energy markets
and supply chain security across the Middle East. If more regional actors become involved, it
could disrupt trade routes through critical points like the Strait of Hormuz, through which a
significant portion of the world’s oil passes. Any increase in energy prices would likely raise the
cost of logistics, which could indirectly affect the production and transportation of grains and
other commodities globally.

Furthermore, should Iran become more involved in supporting Hamas, it could lead to
additional trade sanctions, disrupting the fertilizer and energy markets even further. A
prolonged conflict in the Middle East would likely lead to a spike in oil prices, increasing costs
for grain shipping and creating more uncertainty in the global supply chain, already stretched
thin by the Ukraine-Russia war.

At Nera Company, we are committed to helping our partners maintain stability in these
uncertain times. By leveraging our extensive network and knowledge of the global markets, we
ensure consistent access to grains, maize, wheat, and soja at competitive prices, with an
unwavering focus on customer satisfaction. As a trusted partner, we provide solutions that
minimize the risk of disruptions, ensuring timely deliveries regardless of the geopolitical
challenges.

Nera Company stands as a leader in the grain trade sector, offering experience, reliability, and
high-quality grains to our partners around the world. With a focus on competitive prices and
smooth logistics, we are here to help your business thrive in challenging global conditions.
Contact us today to learn how we can support your grain sourcing needs.