By Bob Stark, Agricultural Economist
A 5 cent weekend gain would seem to have primed the Arkansas 2015 soybean crop cash market for a stronger showing this past week, but traded within a 5 cent spread and ended just slightly higher for the week. The market opened on Monday at a statewide average of $8.91. Price remained virtually unchanged until a 15 cent decline on Thursday. The loss was short-lived as a 16 cent gain on Friday moved the statewide average to a closing level of $8.94, just 3 cents above the Monday average and an overall 8 cent improvement from the previous Friday closing mark (Figure 1).
High daily individual market price of the past trading week was $9.23 reported on Wednesday at Helena. Low market quote for the week was again found at Wynne with the market at $8.48 on Thursday. End-of-the-week quotes saw closing day prices ranging from an $8.62 low at Wynne to a $9.18 high at Helena. The ending quotes represented a range of 56 cents, four cents narrower than the previous week.
The 2016 New Crop Soybean Cash Market Booking price gained 6 cents over the weekend and opened the past week at a Monday statewide average of $8.78. The market traded within a 5 cent span until Thursday when it suffered a 13 cent decline. That loss was exactly offset on Friday with a 13 cent gain that pushed the market to a closing price of $8.82, a 10 cent improvement from the previous Friday close (Figure 2).
High market price of the past week was reported on Friday with Helena at $9.03, the only individual market quote to exceed $9.00 during the past week. Individual market daily low of the week occurred on Thursday as Augusta fell to an $8.37 average. End-of-week individual market quotes on Friday ranged from a low of $8.53 at Augusta to the high of $9.03 at Helena. These ending quotes put the closing spread at exactly 50 cents across all reporting markets in the state, 5 cents narrower than the previous week closing range. All fourteen regular soybean markets provided new crop booking quotes as of the end of the past week.
January Monthly Summaries
The Arkansas 2015 Crop Soybean Cash Market posted strong gains through the past month with an overall gain of 31 cents (Figure 3). The month opened trading on January 4 at $8.63 and closed on January 29 at $8.94. The last trading day was the overall highest statewide average for any day of the month just as the first day had been the lowest average. Among individual markets, Helena reported the highest daily quote reaching $9.23 on January 27. The market showed a strong, linear price trend that should provide some encouragement to the remaining holders of old crop stocks.
The Arkansas 2016 New Crop Soybean Booking Price showed similar strength as the 2015 old crop market. The market opened January trading at $8.63 and climbed steadily to a monthly high of $8.82 on January 29 (Figure 4). High individual market quote of the month went to Helena with $9.03 on January 29, the only day that any individual market exceeded the $9.00 level. The upward price followed a strong, linear trend line and currently shows no indication of slowing or declining.
(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.)