Hard red spring wheat bids in Western Canada posted gains during the week ended June 23, as continued concerns about yields and quality in the U.S. spring wheat crop pushed the market higher.
Depending on the location, average Canada Western Red Spring (CWRS) wheat prices were up $6-$8 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 $272 per tonne in western Manitoba to as high as $289 in northern Alberta.
Quoted basis levels varied from location to location, but generally gained $1 on average to range from about $29 to $46 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$205 to US$218 per tonne. That would put the currency-adjusted basis levels at about US$25-$38 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 $33 to $50 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were up by $1-$3 per tonne, with prices ranging from $183 to $196 per tonne.
Average durum prices held steady with bids in Saskatchewan coming in at about $258-$266 per tonne.
The September spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted June 23 at US$6.6625 per bushel, up 19.25 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 September K.C. wheat contract was quoted June 23 at US$4.825 per bushel, down nine U.S. cents compared to the previous week.
The September Chicago Board of Trade soft wheat contract settled June 23 at US$4.735, down eight U.S. cents on the week.
The Canadian dollar settled June 23 at 75.37 U.S. cents, down by a fifth of a cent relative to its U.S. counterpart compared to the previous week.