MarketsFarm — Spring wheat bids in Western Canada moved higher during the week ended Thursday, as heavy losses in the Canadian dollar more than countered the bearish influence of weakening U.S. futures.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were up by $4.50-$7.40 per tonne during the week ended Thursday, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $522.30 per tonne in southeastern Saskatchewan to as high as $539.30 per tonne in northern Alberta.
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Quoted basis levels varied from location to location and ranged from $78.10 to $95 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 everything into Canadian dollars, CWRS basis levels ranged from $21 to $31.10 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were up $10.30-$12.20 per tonne, with prices ranging from $495 to $507.90 per tonne.
Average durum (CWAD) prices were up $6.40-$21.70 per tonne. Bids ranged from $581.70 to $610 per tonne.
Spring wheat futures in Minneapolis were down on the week, losing 15 U.S. cents per bushel in the July contract to settle at US$12.09 per bushel on Thursday.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The July K.C. wheat contract was quoted Thursday at US$11.485 per bushel, down 5.25 U.S. cents per bushel compared to the previous week.
The July Chicago Board of Trade soft wheat contract settled at US$10.7825 per bushel on Thursday, up seven U.S. cents on the week.
The Canadian dollar closed at 77.35 U.S. cents on Thursday, down nearly two U.S. cents relative to its U.S. counterpart on the week.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
