CANBERRA- Chicago wheat futures rose again on Wednesday and were close to 3-1/2-month highs reached in the previous session on concerns that dry weather in the Black Sea region and Australia will reduce supply.

Corn prices also gained and were near three-month highs, supported by wheat’s rally and a sharp rise in oil prices after an Iranian missile attack on Israel. Higher oil prices can raise demand for biofuel made from feedstock including corn.

Soybean futures inched higher.

The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.1 percent at $5.99-1/2 a bushel, after touching $6.03 on Tuesday – the highest since June 16.

CBOT corn rose 0.4 percent to $4.30-1/2 a bushel after hitting $4.33, its highest since June 27, on Tuesday, while soybeans climbed 0.3 percent to $10.60-1/4 a bushel.

All three contracts have recovered some ground after touching four-year lows in recent months amid plentiful supply.

“Dry conditions across the Black Sea and Russia have impacted Russian wheat planting. We’ve also seen additional short-covering through September,” said Rod Baker at Australian Crop Forecasters in Perth.

Global supply would start to tighten, supporting prices, he added.

Russia’s Voronezh, a major farming area in the world’s top wheat exporting nation, declared a drought emergency on Tuesday, underscoring parched conditions.