Hard red spring wheat bids in Western Canada posted solid gains during the week ended May 26, as supportive action in U.S. futures offset the bearish influence of the Canadian currency.
Depending on the location, average Canada Western Red Spring (CWRS) wheat prices were up $4-$6 in 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 $237 per tonne in western Manitoba to as high as $256 in northern Alberta.
Quoted basis levels varied from location to location, but generally ranged from about $29 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 the Canadian dollar cash bids.
When accounting for currency exchange rates by adjusting Canadian prices to U.S. dollars, CWRS bids ranged from US$176 to US$190 per tonne. That would put the currency adjusted basis levels at about US$19-$33 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 $26 to $44 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were up 20-50 cents, with prices coming in between $160 and $178 per tonne.
Average durum prices were up $2-$6, with bids in Saskatchewan coming in at about $259-$268 per tonne.
The July spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted May 26 at US$5.6875 per bushel, up by 13 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 May 26 at US$4.375 per bushel, down by half a cent compared to the previous week.
The July Chicago Board of Trade soft wheat contract settled May 26 at US$4.3825, up by nearly three U.S. cents on the week.
The Canadian dollar settled May 26 at 74.32 U.S. cents, up by roughly half a cent compared to its U.S. counterpart in the previous week.