MarketsFarm — Spring wheat bids in Western Canada softened during the week ended Thursday, as the bearish influence of the extended Black Sea Grain Initiative more than countered any support from poor winter wheat production prospects in the U.S.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were down by $3.60-$6.70 per tonne across the Prairies, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from $370.70 per tonne in southeastern Saskatchewan to as high as $390.10 per tonne in northern Alberta.
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Quoted basis levels varied from location to location and ranged from $66.30 to $85.70 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 $11.40 to $22.90 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were down by $1.10-$5 per tonne, with prices ranging from $359.70 to $381.90 per tonne.
Average durum prices lost $5.20-$16.40 per tonne. Prices ranged from $398.20 to $407.30 per tonne.
Spring wheat futures in Minneapolis were down by 8.25 U.S. cents per bushel in the July contract to settle Thursday at US$8.285 per bushel.
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 up by 15.5 U.S. cents on the week to close Thursday at US$8.57 per bushel.
The July Chicago Board of Trade soft wheat contract settled Thursday at US$6.1175 per bushel, down by 15.5 U.S. cents on the week.
The Canadian dollar was down by roughly a 10th of a cent relative to its U.S. counterpart, finishing Thursday at 74.07 U.S. cents.
— Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.
