In times of high prices like today’s grain markets, demand rationing is one driver of lower prices. But that’s yet to happen and isn’t likely based on current end-user market conditions and reactions to bullish grain prices, one analyst says. Ethanol margins are still between 48 and 55 cents, with overall production slightly higher than year-ago levels. Cattle feeders have yet to begin price-driven herd liquidation as they find less-expensive feed ingredient alternatives. Grain export demand remains strong to date as well. Wildcards in the equation are Brazil’s crop size, as that nation represents a major competitor to the U.S. on the global export market, as well as potential variability in the 2021 U.S. crop size, which could be increasingly influenced by growing drought conditions in parts of the country. Given current prices, one analyst recommends exploring hedging options to protect price upside while making incremental cash or new-crop futures sales. See more on the prospects for grain demand rationing.