BY BOB STARK, AGRICULTURAL ECONOMIST, ON AUGUST 29th, 2011
Arkansas 2010 crop soybeans began their second consecutive week with a double-digit weekend gain. Market price rose 16 cents over the weekend to open Monday at $13.72. Price basically stayed steady through the entire week until seeing a huge Friday gain.
The market closed at $14.08, its best daily closing price since June 3 and a 52-cent gain from the previous Friday closing price (Figure 1). Highest reported individual market daily average for the past week was $14.24 at Old Town/Elaine on Friday with no other market above $14.18. Lowest individual market daily average was $13.56 reported on Monday at Augusta. Last trading day quotes for the six Arkansas markets still providing old crop quotes were in the $13.91 to $14.24 range, four cents wider than the previous week gap.
Forward booking prices for 2011 crop beans matched the 16 cent weekend gain in the old crop market and opened on Monday at $13.62 (Figure 2). The new crop market stayed mainly flat until Friday when a sharp 31 cent gain took market price to a final closing day average of $13.95. Old Town/Elaine and Helena each topped all individual market quotes for the week, reaching $14.09 on Friday. Nine of the fourteen reporting markets closed the week at or above the $14.00 mark. Jonesboro had the lowest daily average of the week with $13.44 on Monday with Wynne at $13.45, Augusta at $13.47, and Des Arc at $13.48 on the same trading day. The price margin premium on cash market old crop beans over new crop booking prices widened 3 cents during the week to 13 cents with old crop at $14.08 and new crop at $13.95.
(Market average prices stated in this report are unweighted averages of the state markets surveyed by NASS. Price data was based on USDA LR GR111 Arkansas Daily Grain Reports.)