Glacier FarmMedia — Hard red spring wheat bids in Western Canada strengthened during the week ended July 3, as gains in the United States futures and dryness concerns in parts of the Prairies provided support.
Average Canada Western Red Spring (13.5%) wheat prices were up by C$1.70 to C$10.70 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from C$286.10/tonne in southeastern Saskatchewan to as high as C$315.10/tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from $48.30 to $77.40/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.
Read Also
Hormuz-driven fertilizer shortage could raise grain prices, Goldman Sachs says
Disruptions to nitrogen fertilizer supply through the Strait of Hormuz could reduce global grain yields and shift planting decisions, potentially lifting grain prices, Goldman Sachs said in a report on Tuesday.
When accounting for currency exchange rates by adjusting everything into Canadian dollars (C$1=US$0.7366) CWRS basis levels ranged from C$4.10 to C$19.90 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were also higher, up by C$0.40 to C$1.10/tonne, with prices ranging from C$254.70 to C$278.20/tonne.
Average durum prices were weaker, down C$4.50 to C$7.10/tonne, ranging from C$333.10 to C$343.50/tonne.
Minneapolis spring wheat futures were up by 21.75 cents per bushel in the September contract to settle at US$6.4725/bu. on July 3.
Hard red winter wheat futures were up by 2.25 cents in the September contract on the week at US$5.3600/bu.
The September Chicago soft wheat contract increased 20 cents on the week at US$5.5675/bu.
The Canadian dollar was up by a third of a cent relative to its U.S. counterpart, at 73.66 U.S. cents on July 3.
