Russia has introduced a temporary ban on vessel movements in and out of the port of Novorossiysk between midnight and 5 a.m., citing Ukrainian drone attacks. This measure follows earlier traffic restrictions in the Sea of Azov and Kerch Strait. However, grain industry sources indicate that this order was verbal, with no official document sent to shippers. The port is reportedly functioning as usual outside these restricted hours, and grain shipments have not been affected so far.
Novorossiysk is Russia's largest port by volume, handling up to one-third of the country's grain exports, along with oil, metals, and container goods. The ban is a precautionary measure to safeguard port infrastructure and commercial shipping from potential drone threats. Despite the restrictions, authorities aim to keep vital grain and energy export routes operational, with the flexibility to adjust or lift restrictions based on evolving security conditions.
The heightened tensions in the Black Sea and Sea of Azov, characterized by increased attacks on commercial ships and ports by both Russia and Ukraine, have led to significant market reactions. Euronext September wheat futures rose by 4.5% on news of the Novorossiysk closure. Overall, these disruptions threaten grain exports and have pushed international wheat prices to a two-year high, with other key food items like corn and rapeseed also seeing rallies. This comes at a challenging time, with additional pressures on the food industry from global conflicts, heatwaves impacting crops in Europe, and the developing El Niño weather pattern.
