MarketsFarm — Wheat prices on the Canadian Prairies were higher for the week ended Thursday. As Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) wheats had modest upticks, Canada Western Amber Durum (CWAD) incurred double-digit increases.
Gains in the U.S. wheat complex provided support, with a weaker Canadian dollar also underpinning values. The upward movement in wheat was largely driven by the Russian-Ukraine war, especially Russia’s missile strikes on numerous Ukrainian cities earlier in the week.
Average CWRS (13.5 per cent protein) wheat prices added $5.80-$8.30 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $428.70 per tonne in northeastern Saskatchewan to $449.10 per tonne in southern Alberta.
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Quoted basis levels varied from location to location and ranged from $69 to $89.40 per tonne above the futures when using the grain company methodology of quoting the basis as the difference between U.S. dollar-denominated futures and Canadian dollar cash bids.
When accounting for currency exchange rates by adjusting Canadian prices to U.S. dollars, CWRS bids ranged from US$310.50 to US$325.30 per tonne. That would put the currency-adjusted basis levels at about US$34.40-$49.20 below the futures.
Looking at it the other way around, if the Minneapolis futures are converted to Canadian dollars, CWRS basis levels across Western Canada ranged from $29.40 to $35.70 below the futures.
Average CPSR (11.5 per cent protein) wheat prices increased $3.90-$11.60 per tonne. Bids ranged from $410.20 per tonne in southeastern Saskatchewan to $428.70 per tonne in southern Alberta.
Increases in average durum prices were $12.80 to $21.90 per tonne, with bids ranging from $462.10 per tonne in southern Alberta to $475.50 per tonne in northwestern Saskatchewan.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$9.79 per bushel, gaining 16.5 U.S. cents on the week.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The December K.C. wheat contract was quoted at US$9.8225 per bushel on Thursday, rising 17.25 U.S. cents compared to a week ago.
The December Chicago Board of Trade soft wheat contract settled Thursday at US$8.9225 per bushel, increasing 13.25 U.S. cents from the previous week.
The Canadian dollar dropped back 0.46 of a cent on the week, as the loonie was pressured by a stronger U.S. dollar.
— Glen Hallick reports for MarketsFarm from Winnipeg.
