Prairie cash wheat: Bids correct higher

U.S. wheat futures up on week

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MarketsFarm — Wheat bids across Western Canada moved higher during the week ended Thursday, as U.S. futures saw a corrective bounce after falling to their softest levels in over a month.

Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were up by $8.50-$9 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 $287.50 per tonne in southeastern Saskatchewan to as high as $306.50 per tonne in northern Alberta.

Quoted basis levels varied from location to location and ranged from $24 to $43 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 $8 to $21 below the futures.

Bids for Canada Prairie Spring Red (CPSR) wheat were up by $9.50-$14 per tonne on the week, with prices ranging from $272 to $288 per tonne.

Average durum prices were up by $1.50-$4, with bids ranging anywhere from $302 to $313 per tonne.

The Canadian dollar closed Thursday at 82.83 U.S. cents, relatively unchanged on the week.

The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$7.1725 per bushel, up 21.75 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$6.2625 per bushel, up 1.25 cents compared to the previous week.

The July Chicago Board of Trade soft wheat contract settled Thursday at US$6.7625 per bushel, up by one cent on the week.

— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.

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