Hard red spring wheat bids in Western Canada continued their climb upwards for the week ended Aug. 2.
Heat and dryness concerns throughout Europe, the Black Sea region, and Australia continued to drive the United States futures markets higher during the week.
Average Canada Western Red Spring (13.5 per cent CWRS) wheat prices were up by $6 to $15 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $240 per tonne in northwestern Saskatchewan, to as high as $272 in southern Alberta.
Quoted basis levels varied from location to location and ranged from $16 to $48 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$0.7684) CWRS bids ranged from US$184 to US$209 per tonne. That would put the currency adjusted basis levels at about US$15 to US$40 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 $20 to $52 below the futures.
Canada Prairie Red Spring (CPRS) wheat bids were stronger, gaining anywhere from $12 to $16 per tonne depending on the location. Prices ranged from $220 to $238 per tonne.
Average durum prices were lower, with bids ranging anywhere from $228 in northwestern Saskatchewan to $254 in western Manitoba, depending on the location.
The September spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at $6.1050 per bushel on Aug. 2, up by 18 cents from the previous week.
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 $5.6925 per bushel on Aug. 2, up by 36.75 cents compared to the previous week.
The September Chicago Board of Trade soft wheat contract settled at US$5.6050 on Aug. 2, which was up by 30 U.S. cents on the week.
The Canadian dollar settled at 76.84 U.S. cents on Aug. 2, which was up by 0.28 of a cent on the week.