MarketsFarm — Wheat prices on the Prairies during the week ended Thursday incurred moderate losses in Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) while durum (CWAD) pushed upward.
Declines in the U.S. wheat complex led the way, with a higher Canadian dollar this week adding more pressure on Prairie wheat prices.
Average CWRS (13.5 per cent protein) wheat prices pulled back $5.50-$8.30 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 $501.50 per tonne in southeastern Saskatchewan to $519.80 per tonne in northern Alberta.
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Quoted basis levels varied from location to location and ranged from $78.40 to $96.70 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 Canadian prices to U.S. dollars, CWRS bids ranged from US$400.30 to US$414.90 per tonne. That would put the currency-adjusted basis levels at about US$8.20-$22.90 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 ranged from $6.60 to $18.20 below the futures.
Average CPSR (11.5 per cent) wheat prices lost $8.40-$11.10 per tonne. Bids ranged from $467.90 per tonne in southeastern Saskatchewan to $483.80 per tonne in northern Alberta.
Average durum prices gained $2.90-$6.10 with bids ranging from $562.40 per tonne in southern Alberta to $584.90 per tonne in northeastern Saskatchewan.
The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$11.545 per bushel, losing 4.5 U.S. cents on the 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$11.435 per bushel, giving up 30.5 U.S. cents compared to a week ago.
The July Chicago Board of Trade soft wheat contract settled at US$10.765 per bushel on Thursday, falling 28 U.S. cents from the previous week.
The Canadian dollar was higher during the week, climbing by almost a half cent to close on Thursday at 79.81 U.S. cents.
— Glen Hallick reports for MarketsFarm from Winnipeg.
