Hard red spring wheat bids in Western Canada moved lower during the week ended June 8, as improving North American crop conditions weighed on Minneapolis spring wheat futures.
Depending on the location, average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were down $3-$7 per tonne across the Prairie provinces, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $228 per tonne in northwestern Saskatchewan to as high as $256 in northern Alberta and eastern Manitoba.
Quoted basis levels varied from location to location and ranged from $10 to $38 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$176 to US$197 per tonne. That would put the currency adjusted basis levels at about US$20-$41 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 range from $26 to $53 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were weaker, losing anywhere from $1 to $3 per tonne depending on the location. Prices ranged from $217 to $231 per tonne.
Average durum prices were up $2 to down $2 per tonne, with bids in southern Saskatchewan coming in at about $260 per tonne.
The July spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted June 8 at US$5.925 per bushel, down 11.5 U.S. cents from the previous 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 at US$5.3825 per bushel on June 8, down 2.5 U.S. cents compared to the previous week.
The July Chicago Board of Trade soft wheat contract settled at US$5.20 on June 8, down 3.25 U.S. cents on the week.
The Canadian dollar settled June 8 at 77.15 U.S. cents, unchanged on the week.