A new report on world agricultural supply and demand estimates issued today by the Agriculture Department is setting up what could be an interesting new crop market dynamic, according to economic analysis from the American Farm Bureau Federation.

The WASDE report issued today was largely unchanged on the corn and feed grain side and was generally viewed as neutral, but on the soybean side, supply estimates were reduced and U.S. exports increased to help make up for smaller South American crops, according to AFBF Economist Todd Davis.

“We are looking at a situation where soybeans, rather than corn, could very well become the market leader in the U.S. grain and oilseed complex,” Davis said. “Typically, corn prices usually help drive the market prices for the other grain and oilseed commodities, but given what we now know, soybeans are ready to move to the forefront.”

Davis explained that today’s report, coupled with prospective planting estimates from late March, indicate the United States is in rebuilding mode in regard to the nation’s corn supply, as U.S. farmers are expected to plant 95.9 million acres.

This represents the highest corn acreage since 1937. But soybean supplies are likely to move in the opposite direction and become much tighter next year as 2012 U.S. soybean plantings are expected to decline by more than a million acres compared to 2011.