FX.co ★ 3 commodity stocks to benefit from ban on Russian crude imports

Mosaic Company

The first winner to benefit from the shortage of Russian raw materials is the Mosaic Company. It is the largest US producer of potash and phosphate fertilizers. The company has thrived in recent months thanks to a boom in the farming industry and a surge in agricultural commodity prices. The Mosaic Company's shares soared to $64.71, their highest value since 2011. Its current market cap stands at $21.4 billion. Since early 2022, the company’s stock has jumped by a whopping 48.1% amid robust global demand for fertilizers. Analysts predict that MOS shares could see an increase of around 35% to $78.77 in the next 12 months.

Vale

Another company to take advantage of the ban on Russian crude imports is Vale, the world’s largest producer of nickel, iron ore, and copper. The company also produces bauxite, potash, and cobalt. Vale operates a large network of railroads, ships, and ports in Latin America. In 2022, the shares of the company jumped by 41% to $20.95 amid a rise in base metal prices. Vale’s market capitalization amounts to $96.1 billion. The main revenue of the company comes from the massive surge in the price of nickel and other industrial metals. Nickel is mainly used in the automotive and construction industries as a component for stainless steel and in batteries for electric vehicles. In the year ahead, Vale’s shares are projected to gain 60%, moving to the level of $31.72.

Bunge

Bunge closes the list of the top 3 companies that are likely to thrive in the looming commodity crisis. It is one of the world's leading agribusiness and food companies. Bunge is involved in purchasing, storing, processing, and selling agricultural commodity products, including wheat, corn, soybeans as well as rapeseed and sunflower seeds. The conflict in Ukraine has triggered a rally in grain prices, thus contributing to the company’s growth. Wheat futures have spiked to their record highs, while corn prices have surged to multi-year peaks. The reason for this is growing fears over a disruption to global supplies. The company appears to be a good choice for investors given that Bunge is a leader in the global grains industry. Its shares have already added 14% since the start of the year to trade at $112.61, outpacing other leading indicators and reaching their strongest level since 2008. Bunge has a market cap of $15.1 billion. Its stock could see an upside of 29% to $137.10 per share in the next 12 months.