Last week’s USDA Prospective Plantings report kicked off market rallies in both the corn and soybean pits and based on expected demand for both grains moving through the 2021 marketing year, one thing is clear: The initial knee-jerk reaction by the marketplace was for good reason. If farmers plant what they expect based on last week’s USDA data, the U.S. soybean crop won’t be large enough to meet demand, and with carryover bushels running fairly low for corn, it’s like that crop will meet demand but carryover will be even slimmer heading into the 2022 marketing year. A lot of questions remain, with drought continuing to pressure potential production in the northern Plains, but the marketplace may be faced with rationing demand for corn and beans depending on whether farmer raise trend yields as farmers make final planting decisions on flex acres heading into the bulk of spring planting. See more on the market situation.