Hard red spring wheat bids in Western Canada climbed higher during the week ended June 9, as hot and dry conditions in some of the major spring wheat-growing regions of the U.S. and Canada led to a rally in the Minneapolis futures.
Depending on the location, average Canada Western Red Spring (CWRS) wheat prices were up by $8-$11 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 $255 per tonne in western Manitoba to as high as $274 in northern Alberta.
Quoted basis levels varied from location to location, but generally ranged from about $32 to $51 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$190 to US$204 per tonne. That would put the currency-adjusted basis levels at about US$19-$33 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 $44 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were up by $8-$9 per tonne, with prices ranging from $170 to $185 per tonne.
Average durum prices held steady, with bids in Saskatchewan coming in at about $260-$270 per tonne.
The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted June 9 at US$6.065 per bushel, up by 22.75 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 June 9 at US$4.515 per bushel, up 18.25 U.S. cents compared to the previous week.
The July Chicago Board of Trade soft wheat contract settled June 9 at US$4.4575, up 16.5 U.S. cents on the week.
The Canadian dollar settled June 9 at 74.33 U.S. cents, up roughly a quarter of a cent relative to its U.S. counterpart compared to the previous week.