Rust findings spark soy rally, concern acres may switch to corn

Feedstuffs, November, 2004 by Gil Gullickson

Additional Asian soybean rust cases that surfaced last week in Louisiana and Mississippi helped November's soybean complex rally continue.

At press time, the U.S. Department of Agriculture announced three new cases of Asian rust in Louisiana and one in Mississippi to join the Louisiana case USDA announced Nov. 10. Traders are concerned that Asian rust, a fungus that can slice soybean yields up to 80%, could shorten 2005 soybean supplies. This could spike the price end users pay for soybeans and soybean-derived ingredients.

"It will provide some underlying support to soybeans and will probably benefit new crop bean futures in the long run," said Dan Zwicker, market analyst for AgriVisor, Bloomington, Ill.

"What it does, at least initially, is get...