By Bob Stark, Agricultural Economist
The old crop (2015) Arkansas soybean market lost 5 cents over the weekend and entered a steady, daily decline that extended throughout the week before finally ending on Friday with a very modest upturn. The market opened on Monday at $10.14, a 47 cent lower price than the previous Monday. Price fell by double digits two trading days to a weekly low of $9.82 on Thursday. Three cents were recovered for the close on Friday to put the market at a statewide average of $9.85, an overall 34 cent decline for the week (Figure 1). The old crop market did add three additional reporting markets by the end of the past week: Pendleton, Pine Bluff, and Stuttgart. High daily individual market price of the past trading week was seen on Monday with Helena at $10.21. Low quote for the week was $9.56 in Pine Bluff on Thursday. End-of-the-week quotes saw Friday closing day prices ranging from a $9.65 low at Pine Bluff to a high of $10.03 at Old Town/Elaine, the only market ending the week above $10.00. The ending quotes represented a range of 38 cents, a 22 cent widening from the previous week closing spread, but primarily due to the entry of additional markets with low averages.
The steady, week-long decline of the old crop market was only partially reproduced in the 2016 New Crop Soybean Cash Market Booking price. The new crop market lost only 3 cents over the weekend and its decline bottomed out on Wednesday, one day earlier than the old crop. New crop price opened on Monday at a statewide average of $9.76, a 51 cent reduction from the previous Monday. Price fell to its low on Wednesday of $9.54 before recovering 9 cents over the final two trading days. The closing Friday average was $9.63, a 16 cent decline from the previous Friday closing price (Figure 2).
High market price of the past week was reported on Monday with Helena at $10.03, the lone individual daily market quote above $10.00 during the week. Individual market daily low of the week occurred on Wednesday as Wynne fell to $9.23. The end-of-week individual market quotes on Friday ranged from a $9.33 low at Wynne to a high of $9.92 at Helena. These ending quotes put the closing spread at 59 cents across the reporting markets in the state, 4 cents wider than the previous week closing range.
August Monthly Summaries
August trading in old crop (2015) soybeans began the month with a week of low prices, rose for two weeks, and then closed the month with a much sharper downturn (Figure 3).
The old crop market opened on August 1 at $10.32 and closed with a statewide average on August 31 of $9.94, a decrease of $0.38 and a $0.21 decline in total from the July 28 closing price. High daily statewide average was the $10.61 on August 22. The high individual daily market quote also occurred on August 22 with Helena at $10.68. The low individual daily market quote occurred on August 2 with West Memphis at $9.79. Overall statewide average for the month was $10.29 for old crop soybeans, a decline of 41 cents from the July average.
August trading in new crop (2016) soybeans generally followed the old crop (2015) pattern, but at prices about 35 cents lower (Figure 4). The new crop market opened on August 1 at $9.67 and closed with a statewide average on August 31 of $9.54, a decrease of $0.13 for the month and $0.28 in total from the July 31 closing price. High daily statewide average for new beans was $10.27 on August 17. The high individual daily market quote also occurred on August 22 with Helena at $10.54. The low individual daily market quote occurred on August 3 with Jonesboro at $9.05. Overall statewide average for the month was $9.92, a decline of 45 cents from the overall July average.
(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.)