SOYBEAN NOTES is a weekly newsletter focusing on all aspects of Arkansas soybean news. This market economics component looks at cash market & forward pricing quotes from selected markets as reported to National Agricultural Statistics Service in Arkansas.
The extended Labor Day weekend was no friend to Arkansas 2010 crop soybeans as the market price fell 24 cents to post a Tuesday daily average of $13.86 in the first day of trading. Price fell slightly to a low of $13.78 on Thursday before rebounding to post a closing mark of $13.84 on Friday (Figure 1). The closing day average was 26 cents under the previous Friday average trading price. After two straight weeks with highs over $14, highest reported individual market daily average for the shortened week was $13.96 at Helena on Tuesday with Old Town/Elaine at $13.93 and no other market above $13.88 that day. Lowest individual market daily average was $13.63 reported Thursday at Augusta. Last trading day quotes for the seven Arkansas markets still providing old crop quotes was $13.72 to $13.92, after two weeks with at least one market topping $14 on a single day. The overall closing price range lost seven cents from the previous week gap, the second consecutive week of narrowing.
Forward booking prices for 2011 crop beans again perfectly matched the old crop weekend price movement with a 24 cent loss and opened on Tuesday with a $13.83 daily average (Figure 2). The new crop market moved slightly lower through Thursday before regaining most the midweek loss and closing with a Friday average of $13.82. The closing day average represented a 25 cent decline from the previous Friday closing price. Pendleton topped all individual market quotes for the week, reaching $14.01 on Friday, the only market surpassing the $14.00 level during the week. All markets reported new crop quotes except West Memphis that dropped out during the previous week. Wynne and Augusta had the lowest daily average of the week with $13.63 on Thursday. The price margin premium that had existed on cash market old crop beans over new crop booking prices since booking began in January turned negative with old crop at $13.84 and new crop at $13.85.
(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.)