Glacier FarmMedia – One week after hitting their lowest prices since last November, a bounce back in United States wheat futures helped raise Western Canadian wheat bids for the week ended Jan. 25.
The relatively low prices created some interest in the export market. The U.S. Department of Agriculture (USDA) reported net wheat export sales of 451,400 tonnes in its weekly report on Jan. 25, down 36 per cent from the previous week but up 45 per cent from the four-week average. Recent severe cold weather in the northwestern U.S. Plains may have also caused some crop damage.
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Agriculture and Agri-Food Canada (AAFC) released its first projections for the 2024-25 marketing year on Jan. 22. They forecasted a three per cent decline in non-durum wheat acres at 8.248 million hectares, while durum area was steady at 2.477 million. However, total wheat production is expected to increase to 33.3 million tonnes, as well as total wheat carryout to 4.2 million.
Canadian Western Red Spring (CWRS) wheat prices were up C$7.10 to C$8.60 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$315.60/tonne in western Manitoba to C$341.50 in southern Alberta.
Quoted basis levels ranged from between C$55 to C$81/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$0.7410), CWRS bids were from US$233.80 to US$253/tonne. Currency adjusted basis levels ranged from US$7.50 to US$26.70 below the futures. If the futures were converted to Canadian dollars, basis levels would be C$5.60 to C$19.80 below the futures.
Meanwhile, Canadian Prairie Red Spring (CPRS) prices were up C$11.10 to C$13.40/tonne. The lowest average bid for CPRS was C$273.10 in southeast Saskatchewan, while the highest average bid was C$302 in southern Alberta.
The average prices for Canada Western Amber Durum (CWAD) were C$2.90 to C$5.20 per tonne lower with bids between C$439.50 in northeast Saskatchewan to C$448.10 in southern Alberta.
The March spring wheat contract in Minneapolis, which most CWRS contracts are based off of, was quoted at US$7.09 per bushel on Jan. 25 and 21 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 March Kansas City wheat contract was quoted at US$6.37/bu., up 31.75 U.S. cents.
The March Chicago Board of Trade (CBOT) wheat contract gained 26.75 U.S. cents from the previous week at US$6.1225/bu.
The Canadian dollar added 0.05 of a U.S. cent to close at 74.10 cents U.S. on Jan. 25.
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
