Western Canadian wheat bids were mostly higher during the week ended Sept. 5, following the lead of United States wheat futures.
The U.S. Department of Agriculture reported the country’s spring wheat harvest to be 70 per cent complete as of the start of September, matching the five-year average and being two points ahead of last year. By comparison, Manitoba’s spring wheat crop was 41 per cent complete, while Saskatchewan’s was only at 28 per cent. In Alberta, 94 per cent of the province’s winter wheat crop and 17 per cent of its spring wheat crop were harvested as of Aug. 27. Alberta’s next provincial crop report will be released on Sept. 6.
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Ukraine announced on Wednesday it will cap wheat exports at 16.2 million tonnes for 2024-25. In the first two months of the marketing year, Ukraine shipped 3.59 million tonnes of wheat, more than triple from the 1.03 million tonnes shipped last year. In 2023-24, Ukraine exported 18.3 million tonnes of wheat.
Meanwhile, the Australian Bureau of Agricultural and Resource Economics (ABARES) raised its wheat production forecast for 2024-25 by 2.7 million tonnes at 31.8 million due to timely rains in wheat-growing areas. The figure would be 20 per cent above the 10-year average.
Canadian Western Red Spring (CWRS) gained C$14.60 to C$18.20 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices were between C$254.30/tonne in southeast Saskatchewan to C$277.20 in southern Alberta.
Quoted basis levels ranged from between C$24.40 to C$47.30/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.
Accounting for exchange rates and adjusting Canadian prices to U.S. dollars (C$1=US$0.7400), CWRS bids were from US$188.20 to US$205.10/tonne. Currency adjusted basis levels ranged from US$24.80 to US$41.80 below the futures. If the futures were converted to Canadian dollars, basis levels would be C$18.40 to C$30.90 below the futures.
Meanwhile, Canadian Prairie Red Spring (CPRS) prices added C$14.30 to C$26.60 per tonne. The lowest average bid for CPRS was C$226.00 in southeast Saskatchewan, while the highest average bid was C$250.00 in southern Alberta.
The average prices for Canada Western Amber Durum (CWAD) were down C$0.60 to up C$2.90 per tonne with bids between C$288.30 in northwest Saskatchewan to C$301 in western Manitoba.
The December spring wheat contract in Minneapolis, which most CWRS contracts are based off of, was quoted at US$6.2575 per bushel on Sept. 5 and 35.25 U.S. cents higher than the previous week.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The December contract was quoted at US$5.8875/bu., up 28.25 U.S. cents.
The December Chicago Board of Trade (CBOT) wheat contract gained 26.00 U.S. cents from the previous week at US$5.7475/bu.
The Canadian dollar declined 0.22 of a U.S. cent to close at 74.00 cents U.S. by Sept. 5.
