Commodity News Service Canada — Spring wheat cash bids across Western Canada moved lower during the week ended July 17, as losses in the U.S. futures and improving weather conditions in some parts of the Prairies weighed on values. However, durum was the one bright spot from a pricing standpoint, with declining Canadian crop prospects underpinning that market.
Average Canada Western Red Spring (CWRS) wheat prices were down by $7 to $12 per tonne over the week, with bids ranging from about $222 per tonne in north-central Saskatchewan, to as high as $233 per tonne in Manitoba, according to price quotes from a cross-section of delivery points across Western Canada.
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Quoted basis levels varied from location to location, but generally improved by about $4 per tonne, to average about $21 above the futures when using the grain company methodology of quoting the basis as the difference between the U.S. dollar denominated futures and the Canadian dollar cash bids.
When accounting for the currency exchange rates by adjusting the Canadian prices to U.S. dollars ($1=US$0.7700 as of July 17) CWRS bids ranged from US$172 to US$179 per tonne. That would put the currency-adjusted basis levels at about US$26 to US$36 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 $34 to $46 below the futures.
Average Canada Prairie Red Spring (CRPS) bids were $9 to $12 per tonne lower. CPRS prices came in at about $171 per tonne in Manitoba, $179 per tonne in Saskatchewan, and $190 to $198 per tonne in Alberta.
Soft white spring wheat prices were down by $7 to $9 per tonne, ranging from $209 to $212 per tonne in Alberta.
Winter wheat prices were $9 to $11 per tonne lower across Western Canada, with prices ranging from $172 to $185 per tonne.
Meanwhile, durum prices were up by anywhere from $10 to $26 per tonne. Bids in southern Saskatchewan, where the bulk of the crop is grown, were up by $14 at $332 per tonne.
The September spring wheat contract in Minneapolis, which most CWRS contracts in Canada are based off of, was quoted at US$5.7475 per bushel on July 17, down 32.75 cents from the week prior.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The September Kansas City wheat contract was quoted at US$5.4650 per bushel on July 17, down 25.75 cents from last week.
The September Chicago Board of Trade soft wheat contract settled at US$5.5400 on July 17, which was 22.00 cents weaker compared to the week prior.
The Canadian dollar closed at 77.00 U.S. cents on July 17, which was down by nearly two cents relative to its U.S. counterpart compared to the previous week.
A full list of prices can be found here.
