Hard red spring wheat bids in Western Canada posted solid gains during the week ended April 28, taking strength from action in U.S. markets.
Depending on the location, average Canada Western Red Spring (CWRS) wheat prices were up by $10 to $13 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 $233 per tonne in western Manitoba to as high as $254 in northern Alberta.
Quoted basis levels varied from location to location, but generally ranged from about $35 to $56 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$172 to $188 per tonne. That would put the currency-adjusted basis levels at about US$10-$26 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 $13 to $35 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were up by $11-$13 per tonne, with prices ranging from $158 to $174 per tonne.
Average durum prices were up as much as $1 per tonne, with bids in Saskatchewan coming in at about $254 to $257 per tonne.
The July spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted at US$5.5475 per bushel on April 28, 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 July K.C. wheat contract was quoted April 28 at US$4.3725 per bushel, up 20 U.S. cents compared to the previous week.
The July Chicago Board of Trade soft wheat contract settled April 28 at US$4.3225, up by 11.25 U.S. cents on the week.
The Canadian dollar settled April 28 at 74.12 U.S. cents, up by roughly a 10th of a cent relative to its U.S. counterpart compared to the previous week.