By Bob Stark, Agricultural Economist
The 2014 Arkansas Cash Soybean market crashed sharply during the past week, most likely in response to various USDA reports projecting more acres and higher yields. The market started with promise gaining 32 cents over the weekend and opened on Monday with a statewide average price of $9.92. Price then moved much lower on the next two days, falling to a statewide average of $9.09 on Wednesday. An upward correction took price to $9.26 on Thursday, but the market weakened again on Friday to close the week at $9.16, an overall drop of 44 cents from the previous Friday closing mark (Figure 1). High individual daily market quote of the past week was $10.10 at Pendleton on Monday. Low daily quote of the week occurred on Wednesday as Pine Bluff reported a price of $8.82. The Friday reported closing prices ranged from an $8.89 low at Pine Bluff to a high of $9.35 at Pendleton. The closing range of 46 cents was only 1 cent wider than the previous week with five market participants entering quotes for the entire week.
The 2015 soybean crop booking market matched the 32 cent weekend gain of the old crop market before suffering similar declines midweek. New beans opened trading on Monday at $9.80, 61 cents above the previous week opening. The promising start was soon just a memory as price fell Tuesday and then crashed to a weekly low average of $8.97 on Wednesday. The market recovered partly on Thursday, but closed the week with slightly lower Friday trading to end the week at a statewide average of $9.05, a 43 cent decline from the previous week close (Figure 2). High individual market quote for the week was $10.05 at Old Town/Elaine on Monday. Low market quote for the week occurred on Wednesday with Wynne, Augusta, Pine Bluff, and Des Arc all at $8.80. Thirteen of the regular state markets continued to provide new crop quotes. End-of-the-week quotes saw closing day prices ranging from a low of $8.87 at Wynne, Pine Bluff, and Des Arc to a high of $9.27 at Old Town/Elaine. The ending quotes represent a range of 40 cents, a 5 cent narrowing from the closing quotes range of the previous week.
(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.)