URBANA, Ill. – The USDA’s August Crop Production report confirmed prospects for small U.S. corn and soybean crops and the need for consumption of both crops to decline sharply in the year ahead.

Price behavior since the release of the USDA reports last Friday suggests that both the corn and soybean markets believe production forecasts will increase and/or prices are already high enough to motivate the necessary rationing. University of Illinois agricultural economist Darrel Good said such conclusions may be premature.