MarketsFarm — Wheat prices on the Canadian Prairies saw modest increases in the red spring varieties during the week ended Thursday, while durum stepped back.
Significant gains in the U.S. wheat complex spilled over into Canadian cash prices, but stronger Canadian dollar tempered further increases.
Ongoing concerns about dry conditions in the U.S., especially the southern Plains, fueled the upswings in Chicago, Kansas City and Minneapolis wheats. Also, heightened international tensions over the war in Ukraine added to global worries, which added to gains in wheat.
Read Also
U.S. finalizes biofuel blending quotas for 2026-27, cuts RINS for foreign feedstocks
The Trump administration on Friday finalized new biofuel blending volumes mandates for the U.S. oil refiners, requiring more of the fuels made from corn and other agricultural products than initially proposed,in an apparent win for U.S. farmers.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices saw increases of $7.20-$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 about $390.50 per tonne in southeastern Saskatchewan to $414.80 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from $68.40 to $92.80 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$288.50 to US$306.50 per tonne. That would put the currency-adjusted basis levels at about US$15.50-$33.50 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 $11.50 to $24.80 below the futures.
Average Canada Prairie Spring Red (CPSR, 11.5 per cent protein) wheat prices advanced $7.40-$12.90 per tonne. Bids ranged from $379.20 per tonne in southeastern Saskatchewan to $402.50 per tonne in southern Alberta.
Average Canada Western Amber Durum (CWAD) prices were down $4.40-$5.80 per tonne, with bids ranging from $445.10 per tonne in northeastern Saskatchewan to $456.10 per tonne in southern Alberta.
The May spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$8.7975 per bushel on Thursday, rising 38.5 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 May K.C. wheat contract was quoted Thursday at US$8.725 per bushel, adding on 51.75 U.S. cents compared to a week ago.
The May Chicago Board of Trade soft wheat contract settled at US$6.9225 per bushel on Thursday, up 26.05 U.S. cents from the previous week.
The Canadian dollar added nearly three-quarters of a cent during the week, with the loonie closing at 73.89 U.S. cents on Thursday.
— Glen Hallick reports for MarketsFarm from Winnipeg.
