Hard red spring wheat bids in Western Canada posted small gains during the week ended July 21, as persistent weather concerns in the U.S. Spring Wheat Belt provided support. However, rains in the dry area over the weekend (July 22-23) could temper additional advances.
Depending on the location, average Canada Western Red Spring (CWRS) wheat prices were up by C$1 to C$3 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 C$283 per tonne in western Manitoba, to as high as C$299 in eastern Manitoba.
Quoted basis levels varied from location to location, but generally held steady to range from about $2 to $18 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 U.S. dollars (C$1=US$0.7969 as of July 21) CWRS bids ranged from US$225 to US$238 per tonne. That would put the currency adjusted basis levels at about US$43 to US$56 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 C$54 to C$70 below the futures.
Canada Prairie Red Spring (CPRS) wheat bids were down by C$7 to C$8 per tonne, with prices ranging from C$190 to C$204 per tonne.
Average durum prices held steady, with bids in Saskatchewan coming in at about C$274 to C$292 per tonne.
The September spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$7.6575 per bushel on July 21, up by 7.75 U.S. cents from the previous week. However, the weekend rains led to a sharp sell-off Monday morning, July 24, and those losses should spill into the Canadian cash market.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The September Kansas City wheat contract was quoted at US$4.9600 per bushel on July 21, down by 17.50 U.S. cents compared to the previous week.
The September Chicago Board of Trade soft wheat contract settled at US$4.9925 on July 21, which was down by 11.50 U.S. cents on the week.
The Canadian dollar settled at 79.69 U.S. cents on July 21, which was up by roughly three-quarters of a cent on the week.