Glacier FarmMedia – Prices for wheat on the Canadian Prairies were either side of steady by the week ended May 9. There were losses for Canadian Western Red Spring Wheat and Canadian Western Amber Durum, but Canada Prairie Red Spring Wheat incurred increases.
The United States wheat complex started the week with gains, but there were hard losses by mid-week only to wrap up with something of a recovery.
As for the Canadian dollar, there was very little net change during the week, but it topped off at 73.20 U.S. cents on May 6, only to quickly fall two days later to 72.81 before regaining lost ground.
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Average CWRS (13.5%) prices lost C$5.20 to C$7.80 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Those prices ranged from about C$319.40 per tonne in southeastern Saskatchewan to C$337.00 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from C$60.80 to C$78.40 per 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.
When accounting for currency exchange rates by adjusting Canadian prices to United States dollars (C$1=US$0.7304), CWRS bids ranged from US$233.30 to US$246.10 per tonne. That would put the currency adjusted basis levels at about US$12.50 to US$25.30 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 C$9.10 to C$18.50 below the futures.
Average CPRS (11.5%) wheat bumped up 50 cents to C$2.50 per tonne. Bids ranged from C$292.60 per tonne in southeastern Saskatchewan to C$316.90 per tonne in southern Alberta.
Average CWAD prices were down C$3.20 to C$9.60 per tonne. Bids ranged from C$389.20 per tonne in southern Alberta to C$399.60 per tonne in western Manitoba.
The July spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$7.0375 per bushel on May 9, losing 5.50 cents on the week.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The July Kansas City wheat contract was quoted at US$6.5175 per bushel on May 9, rising 15.25 cents compared to a week ago.
The July Chicago Board of Trade soft wheat contract settled at US$6.3750 per bushel on May 9, jumping 33.25 cents.
The Canadian dollar closed May 9 at 73.04 U.S. cents, nudging up 4/100ths of a cent.
— Glen Hallick reports for MarketsFarm from Winnipeg
