Wheat bids in Western Canada rose for the week ended May 25, taking support from rising U.S. futures and a weaker Canadian dollar.
Depending on the location, average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were up $7-$17 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 $248 per tonne in northwestern Saskatchewan to as high as $276 in northern Alberta and eastern Manitoba.
Quoted basis levels varied from location to location and ranged from $11 to $39 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$191 to US$214 per tonne. That would put the currency adjusted basis levels at about US$23-$46 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 $31 to $59 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids rose anywhere from $13 to $15 per tonne depending on the location. Prices ranged from $229 to $245 per tonne.
Average durum prices were higher, with bids in Western Canada coming in at about $235-$266 per tonne.
The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted May 25 at US$6.4425 per bushel, up 15.25 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$5.64 per bushel on May 25, up 25.25 U.S. cents compared to the previous week.
The July Chicago Board of Trade soft wheat contract settled at US$5.43 on May 25, up 24.75 U.S. cents on the week.
The Canadian dollar settled May 25 at 77.08 U.S. cents, down 0.56 cents on the week.