Amid increasing concerns over the situation in the Black Sea region, Chicago wheat futures continued to rise on Friday, with the market's focus on the further escalation of the conflict between Russia and Ukraine. Wheat prices reached $5.89-1/2 per bushel, nearing the two-month high of $5.91-3/4 touched on Thursday. Although the market's reaction to Ukraine's accusations of Russian attacks on grain ships was relatively mild, geopolitical uncertainties continue to support prices.
Meanwhile, despite the U.S. Department of Agriculture unexpectedly raising its corn production forecast, corn futures rose for the third consecutive day to $4.09-3/4 per bushel. Drought conditions in South America also provided additional support for the corn and soybean markets. The drought in Brazil's main soybean-producing area has set a record for the lowest soil moisture levels in 30 years, which could further drive global grain prices up.
