MarketsFarm — Wheat bids in Western Canada were mixed during the week ended Friday, with some gains observed in Canada Western Red Spring (CWRS) wheat, and a mixed tone for Canada Prairie Spring Red (CPSR). Durum (CWAD) saw small losses.
Average CWRS (13.5 per cent protein) wheat prices were steady to up by $4 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 $223 per tonne in northeastern Saskatchewan to as high as $242 per tonne in eastern Manitoba.
Quoted basis levels varied from location to location and ranged from $33 to $53 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$160 to US$174 per tonne. That would put the currency-adjusted basis levels at about US$15-$29 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 range from $11 to $21 below the futures.
Bids for CPSR wheat ranged from $204 per tonne in southeastern Saskatchewan to $224 per tonne in southern Alberta.
Average durum prices were slightly lower, with bids ranging from $286 per tonne in northwestern Saskatchewan to $299 per tonne in western Manitoba.
The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$5.15 per bushel, down 4.25 cents from the previous week.
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$4.88 per bushel, losing 5.25 cents compared to the previous week.
The July Chicago Board of Trade soft wheat contract settled at US$5.24 per bushel on Thursday, down 20.5 cents on the week.
The Canadian dollar closed Thursday at 71.89 U.S. cents, gaining some strength after losing considerable ground due to negative impact the COVID-19 pandemic is having on global financial markets.