SOYBEAN NOTES is a weekly newsletter focusing on all aspects of Arkansas soybean news. This market economics component looks at cash market and forward pricing quotes from selected markets as reported to National Agricultural Statistics Service in Arkansas.
The 2011 crop soybean market continued to move lower during the past week. The Monday average was $12.11, actually a four cent improvement from the prior week closing day price (Figure 1). But market price began a choppy descent with sharp losses on both the Wednesday and Friday trading days of the week. The Friday closing average was $11.39 per bushel, 68 cents under the previous Friday average trading price. Highest reported individual market daily average for the week was $12.33 at Old Town/Elaine on Tuesday. By Wednesday, all markets had fallen below the $12.00 level and all finished the week under that mark. The lowest individual market daily average nearly fell under $11.00 with Augusta at $11.16 on Friday. Last trading day quotes for the seven Arkansas markets still providing old crop quotes was $11.16 to $11.54. The overall closing price range widened by six cents compared to the previous weeks gap.
Forward booking prices for 2011 crop beans gained two cents on Monday from the previous Friday price to average $12.08, the second sub-$13.00 day since mid-August (Figure 2). Like the previous week, the market rallied slightly with a four cent recovery on Tuesday, but prices moved lower in a choppy manner through the week before ending with a Friday closing average of $11.32. The closing day average represented a 74 cent decline from the previous Friday closing price. Old Town/Elaine submitted the highest individual market quote for the week at $12.33 on Tuesday. Helena trailed closely at $12.31. The lowest individual daily average was $11.12 on Friday at Jonesboro. Three other markets also ended the week below the $11.20 level: Wheatley, Augusta, and Des Arc. The price margin premium for cash market old crop beans over new crop booking prices expanded this week, as old crop beans held a seven cent advantage. Old crop beans ended the week at $11.39 with new crop at $11.32.
(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.)