Australia raised its wheat crop forecast after strong winter rains improved growing conditions, just as the worsening Black Sea crisis creates additional demand for the country's grain. The Department of Agriculture said it expects a 2026/27 wheat crop of 29.9 million tons, according to a report released Tuesday. That's around 12% higher than the government's previous forecast in June and would be the eighth-biggest harvest on record.

This outlook shift comes amid global supply concerns following the escalation of the Black Sea crisis, which has heightened international interest in Australian grain exports. The forecast upgrade signals Australia's growing role in stabilizing global wheat markets amid geopolitical instability.