By Bob Stark, Agricultural Economist and Jeremy Ross, Professor and Extension Agronomist – Soybeans
Old crop soybean price rose 4 cents over the past weekend and eventually rose higher after a Tuesday decline (Figure 1). The Arkansas 2019 Crop Soybean Cash Market opened on Monday at $9.10, 6 cents over the previous week opening day average. Price fell 11 cents on Tuesday, but regained that and more by rising 15 cents on Wednesday. The gain was retained on Thursday and a 5 cent Friday increase allowed the market to end the week at a statewide closing average of $9.19, an overall 13 cent gain from the previous week closing mark. The high individual market daily quote of the week was $9.42 on Monday at West Memphis. Low quote of the week was $8.80 at Des Arc on Tuesday. Comparisons of individual market highs and lows by trading day were complicated by five markets ceasing to provide quotes after Tuesday. The West Memphis high topped all individual market daily quotes, but the individual market low was $8.87 among the four markets providing quotes each day of the past week. The Friday ending price quotes across the four reporting markets ranged from an $8.93 low at Little Rock to a high of $9.31 at Osceola. That put the ending quotes range at 38 cents, 20 cents narrower than the previous week closing day of trade, but likely due in part to the specific markets reporting.
The Arkansas 2020 Crop Soybean Booking Market gained 1 cent over the weekend and then suffered the same Tuesday decline as old crop beans. The market diverged as new crop price continued to fall on Wednesday before partially recovering the early week losses over the remaining trading days (Figure 2). New crop booking price opened on Monday at a statewide average of $9.01, up 1 cent from the previous week opening day price. New crop bookings lost 11 cents on Tuesday and another 4 cents on Wednesday to the weekly low of $8.87 before posting back-to-back 4 cent gains to end the week. New crop booking price ended the week at a statewide closing average of $8.95, an overall loss of 5 cents compared to the previous week closing mark. High individual daily market quote for the past week was $9.25 on Monday at Blytheville and Osceola. Low individual market quote of the week was $8.59 on Tuesday at Jonesboro. End-of-the-week quotes saw the Friday closing day prices ranging from a low of $8.69 at Jonesboro to a $9.15 high at Helena. The ending price quotes represented a range of 46 cents, 8 cents narrower than the previous week closing range. The market received price quotes from twelve market locations across the state for each reporting day of the past week with Old Town/Elaine failing to provide a Wednesday quote.
July 2020 Monthly Summary
The 2019 crop soybeans trended slightly upward for most of July. The statewide average price rose 5 cents over the last June trading average and opened July at $8.93. Price rose sharply by 17 cents from July 7 to 9, but gave it all back and more to reach the monthly low of $8.89 on July 15. The market then moved higher through most of the remaining month (Figure 3). Old crop soybeans reached its monthly high on July 31 at a closing statewide average of $9.19. The lowest daily statewide average for the month was $8.89 on July 15. The market closing price on July 31 represented a 31 cent gain from the last trading day of June. High individual daily market quote of the month was $9.46 on July 23 and 24 at Osceola. The low individual daily market quote was $8.69 at Des Arc on July 15. The overall July statewide average for 2019 soybeans was $9.03, 38 cents above the June 2020 average.
Compared to old crop soybean, the 2020 New Crop Soybean Booking market showed a much more steady trend overall during the month of July trading with the exception of a mid-month 15 cent decline on July 13 that was recovered by July 16 (Figure 4). New crop soybean began the month rising 17 cents from the last June trading day average, opening at an $8.98 statewide average. Price reached the high statewide daily average on July 6 at $9.05. The mid-month period of decline took price down to a statewide average of $8.75, but the market quickly recovered and finished the month at $8.95 on July 31, an overall gain of 14 cents from the last June trading day. The high individual daily market quote of July was $9.26 and occurred on July 6 at Blytheville, West Memphis, and Helena. The low individual daily market quote of the month was $8.46 and occurred on July 13 at Jonesboro. The overall statewide average for July was $8.94 for the 2020 new crop soybean booking price, a 25 cent improvement compared to June 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.)