The port of Azov has seen heavy rain since Nov. 24, which has flooded the Black Sea port and prevented the loading of grain aboard coaster vessels, market participants said to S&P Global Commodity Insights Nov. 27.
It is expected that some stock has also been damaged amid the sea and rainwater entering warehouses at the port, according to sources.
“Not all terminals [at Azov] are expecting delays — ours was okay,” said one Russia-based trader who operates from the Azov port. “But there are quite of traders who are having troubles.”
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It was announced Nov. 24 that the Kerch Strait — which vessels must pass through to enter the Black Sea from the Azov Sea — will be closed until Nov. 30 due to the storm. Inspection delays at Kerch were already up to two weeks before the storm, now, on top of flooding at Azov port, traders are seeing significant setbacks in the flow of grain in the region.
“We have some cargoes to be loaded over there [in Azov port], the storm will cause 10-15 days max delay,” one mill owner in Turkey said. “But it’s not a problem for us, since we have huge stocks.”
Platts CIF Marmara 12.5% wheat protein assessment was up $2/mt at $249/mt Nov. 24 amid stronger demand from Turkey.
“I would expect demand will increase as there is a lack of cargo due to weather demand,” another Russia-based trader said.
Because of the storm, the forecast for Russian wheat exports is now between 3.8 million mt and 4 million mt for November, according to IKAR, which is up to 500,000 mt less than originally estimated.
In the northern part of the Black Sea, there are at least 70 cargo and tanker vessels in Novorossiysk, Russia, according to Marine Traffic Nov. 27.
Meanwhile, the Belize-flagged Blue Shark also run aground near Anapa, Russia, when it ran into difficulties en route to Taman to load grain bound for Egypt, traders in the region said.
In Sochi, Russia, railway infrastructure was damaged as embankments succumbed to sea waves, according to footage sent to S&P Global Commodity Insights.