The rising tensions in Israel are of course being monitored by market participants. Nearly three weeks into the conflict, the impact on commodity prices remains limited. However, players are watching closely, concerned about geopolitical escalation through the potential involvement of Iran and Saudi Arabia.
Farmers in Israel cultivate a diverse range of fruit and vegetable crops, many of which are destined for export markets. A significant portion of these crops are grown in the northern regions, which have been also affected by recent conflict events. The ongoing conflict has placed immense pressure on agricultural supply chains.
Market sources report that many growers have faced challenges accessing their fields due to safety concerns, and a substantial number of local farm workers have been called up for reserve duty while foreign workers have left Israel, which has constrained labor availability.
As a result, those farmers who can work in their fields are operating at limited capacity. Currently, the harvesting of citrus crops and avocados is underway, although progressing slowly. For field crops such as tomatoes, carrots, onions, cucumbers, and most other vegetables, the harvest and storage window are significantly narrower, as they tend to be more perishable.
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