Hard red spring wheat bids in Western Canada continued to trend lower during the week ended April 7, posting losses for the third straight week as declines in Minneapolis futures weighed on prices. However, other wheat classes posted gains, as winter wheat futures in the U.S. held steady.
Depending on the location, average Canada Western Red Spring (CWRS) wheat prices were down by $2-$4 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 $218 per tonne in western Manitoba to as high as $237 in northern Alberta.
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Quoted basis levels varied from location to location, but generally improved to range from about $28 to $47 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$162 to US$177 per tonne. That would put the currency-adjusted basis levels at about US$13-$28 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 $17 to $38 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were up by $2-$5 per tonne, with prices ranging from $156 to $169 per tonne.
Average durum prices were up by $2-$4 per tonne, with bids in Saskatchewan coming in at about $254-$258 per tonne.
The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted April 7 at US$5.2625 per bushel, down 16 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 April 7 at US$4.3425 per bushel, up 0.5 U.S. cents compared to the previous week.
The May Chicago Board of Trade soft wheat contract settled April 7 at US$4.3625, up by about 2.75 U.S. cents on the week.
The Canadian dollar settled April 7 at 74.57 U.S. cents, down by roughly half a cent relative to its U.S. counterpart compared to the previous week.
