By Bob Stark, Agricultural Economist and Jeremy Ross, Assistant Professor/Extension Agronomist – Soybean
The Arkansas 2019 Crop Soybean Cash Market posted modest gains over the weekend and into the early part of the week, but a sharp Wednesday downturn put the market into a decline that persisted through the Friday close (Figure 1). The market gained 2 cents over the weekend and opened Monday at $8.80, 1 cent under the previous opening day level. Price picked up another 2 cents on Tuesday before suffering a 23 cent decline on Wednesday. The market continued daily lower, falling to a Friday closing statewide average of $8.45, a 33 cent overall decrease from the previous week closing average. High daily individual market quote of the past week was $9.13 on Tuesday at Osceola. Low quote of the week was $8.19 at Wynne on Friday. End-of-the-week quotes saw prices ranging from the $8.19 low at Wynne to a high of $8.82 at Osceola. The ending quotes range was 63 cents, unchanged from the previous two weeks. The market received price quotes from only nine locations each trading day of the past week as West Memphis, Helena, and Old Town/Elaine dropped out by midweek.
The Arkansas 2020 Crop Soybean Booking Market started weaker than the old crop market with a 3 cent weekend loss, but added 2 cents on Tuesday before suffering a 13 cent loss on Wednesday. Unlike the old crop market decline, new crop soybeans went almost steady after Wednesday (Figure 2). The market opened on Monday at a statewide average of $8.65, a 2 cent increase from the previous week opening day. Price reached $8.67 on Tuesday before the Wednesday decline. The market closed on Friday at a statewide average of $8.51, a 17 cent drop from the previous week closing mark. High daily individual market quote of the past week was $8.88 on Tuesday at Osceola. Low quote of the week was $8.12 on Friday at Wynne. End-of-the-week quotes saw the closing day prices ranging from the low of $8.12 at Wynne to an $8.72 high at West Memphis. The ending price quotes represented a range of 61 cents, unchanged from the previous week closing range. The market received price quotes from only twelve major locations across the state for all reporting days of the past week as Helena stopped providing quotes after Monday.
The 2019 crop soybeans steadily downward price trend of January and somewhat higher February trend in trading was replaced in March by a roller coaster ride. The market opened the month at a first day statewide average of $8.86, 7 cents over the last February trading day average. Price moved above the $9.00 level by March 4, but then entered a major decline that extended to a mid-month low of $8.17 on March 16. The two week decline was almost completely reversed in a week as price rose to $8.84 on March 24. The market then went generally steady for the remainder of the month, closing at an $8.82 statewide average to end trading for the month, an overall 3 cent gain from the last February trading day. The high individual daily market quote of the month was $9.29 on March 4 at Helena. The low individual daily market quote was $7.87 at Wynne on March 16. The overall March statewide average for 2019 soybeans was $8.67, 14 cents under the February 2020 average.
The February market for 2020 New Crop Soybean Booking began the month well with a 5 cent gain over the last February trading day average. But price quickly entered a decline that persisted through March 18. The monthly low statewide daily average was $8.31 on that date. About half of the losses in early March were recovered between March 18 and 26 as price rose 39 cents. But the rally lost steam and price went basically steady through the remainder of the month. The market closed March 31 at a statewide average of $8.67, an overall loss of 36 cents from the last February trading day average. The high individual daily market quote of March was $9.29 and occurred on March 4 at Osceola. The low individual daily market quote of the month was $7.92 and occurred on March 18 at Wynne. The overall statewide average for March was $8.69 for the 2020 new crop soybean booking price, a 35 cent decline compared to February 2020.
(Market average prices stated in this report are unweighted averages of the state markets surveyed by USDA-AMS. Price data was based on USDA LR GR111 Arkansas Daily Grain Reports.)