Nothing seems to be stopping speculative interest in corn (and other ag commodities). Dec-21 corn futures continued to climb higher last week, testing contract highs near $4.20 per bushel, a value last reached in July 2019. The current net long position in ag commodities was estimated at over 750,000 contracts as of Friday, the largest since 2012 and only 30,000 contracts below the all-time record.
The weather outlook improved in South America with some welcome rains, and more is in the forecast through the balance of October. Given that crops are about one to two weeks behind due to the very dry soil conditions, this should help expedite planting progress. More moisture will be needed to support germination in November, and the odds are favorable in Brazil at least prior to their rainy season. La Niña is also being thought to have reach peaked intensity and could wane in the winter months, potentially allowing for improved rainfall.