Corn retreats from 18-month high but heads for second weekly gain

U.S. government bonds sold off again following a brief reprieve on Thursday, pushing yields higher and keeping stocks under pressure as investors questioned whether U.S. Treasury support measures would provide lasting relief. MKTS/GLOB

Expectations of lower yield in the United States come as global supplies tighten.

The International Grains Council has cut its forecast for 2026/27 global corn production by 1 million metric tons to 1.305 billion tons, it said on Thursday.

Brazil's corn market deficit is expected to jump to 7.2 million metric tons in the 2026/27 season, from 2.7 million tons in the previous cycle, driven mainly by stronger demand from ethanol plants, agribusiness consultancy Datagro estimated on Thursday.