Glacier FarmMedia – Western Canadian wheat bids were little affected by a stronger Canadian dollar and the recent drop-off in United States wheat futures during the week ended March 7.
Pressured by a low number of exports and declining prices for Black Sea wheat as well as European milling wheat, May contracts for all three major U.S. varieties hit contract lows during the week. There was also positioning prior to the release of the U.S. Department of Agriculture’s (USDA) monthly supply/demand estimates on March 8.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
The Canadian Grain Commission (CGC) reported 455,400 tonnes of wheat exports for the week ended March 3, down from 528,500 during the previous week. So far in 2023-24, 12.76 million tonnes of Canadian wheat have been exported, compared to 11.82 million at the same time last year. A weather system brought up to 40 centimetres of snow across Saskatchewan and Manitoba during the first week of March, which could alleviate some dryness concerns when seeding starts. Statistics Canada will release its 2024-25 principal field crop acreage estimates on March 11.
Canadian Western Red Spring (CWRS) wheat prices were down C$2.40 to up C$0.80 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices were between C$291.90/tonne in southeast Saskatchewan to C$315.30 in southern Alberta.
Quoted basis levels ranged from between C$51.30 to C$74.70/tonne 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.
Accounting for exchange rates and adjusting Canadian prices to U.S. dollars (C$1=US$0.7422), CWRS bids were from US$216.60 to US$234/tonne. Currency adjusted basis levels ranged from US$6.60 to US$24 below the futures. If the futures were converted to Canadian dollars, basis levels would be C$4.90 to C$17.80 below the futures.
Meanwhile, Canadian Prairie Red Spring (CPRS) prices were down C$2 to C$3.90/tonne. The lowest average bid for CPRS was C$248 in southeast Saskatchewan, while the highest average bid was C$273.30 in southern Alberta.
The average prices for Canada Western Amber Durum (CWAD) were down C$6.50 to up C$0.50 per tonne with bids between C$388 in northeast Saskatchewan (reported on March 5) to C$393 in southwest Saskatchewan.
The May spring wheat contract in Minneapolis, which most CWRS contracts are based off of, was quoted at US$6.5475 per bushel on March 7 and 4.25 U.S. cents lower than the previous week.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The May Kansas City wheat contract was quoted at US$5.7475/bu., down 12.5 U.S. cents.
The May Chicago Board of Trade (CBOT) wheat contract lost 47.75 U.S. cents from the previous week at US$5.285/bu.
The Canadian dollar added 0.53 of a U.S. cent to close at 74.22 cents U.S. on March 7.
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
