On Friday, 4th of August 2023, Mintec learned that the Russian naval ship Olenegorsky Gornyak was hit by a Ukrainian sea drone near the port of Novorossiysk, a key hub for Russian grain exports. Market players have noted that this is ‘a response to the Danube River ports attacks’ that happened in the last two weeks. According to market sources, the port was temporarily shut but resumed operation on Friday afternoon; thus, the supply risk has eased. Even though the port closure was short-term, it adds further uncertainty to Black Sea trade as the war between Russia and Ukraine has intensified in the last couple of weeks. Mintec has learned from market players that there are significant concerns that shipping through the Black Sea region may become exceedingly difficult. Although insurance can currently be obtained from shipping brokers and insurance underwriters, future availability is uncertain. Following this news, the CBOT wheat futures price climbed by 3.5% to $6.49 a bushel.
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