U.S. drought keeps Prairie wheat bids climbing

Wheat futures rallied on conditions in Montana and North Dakota

U.S. drought keeps Prairie wheat bids climbing

Hard red spring wheat bids in Western Canada continued to rise with the rallying U.S. futures during the week ended June 30, as drought conditions in North Dakota and Montana worsened.

Depending on the location, average Canada Western Red Spring (CWRS) wheat prices were up $33 to $37 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 $309 per tonne in western Manitoba to as high as $324 in eastern Manitoba.

Quoted basis levels varied from location to location, but generally lost about $1 on average to range from about $27 to $43 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$238 to US$250 per tonne. That would put the currency adjusted basis levels at about US$32 to US$44 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 $41 to $57 below the futures.

Canada Prairie Spring Red (CPSR) wheat bids were up $19 to $26 per tonne, with prices ranging from $207 to $216.

Average durum prices were up $1 to down $4, with bids in Saskatchewan coming in at about $259 to $267 per tonne.

The September spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted June 30 at US$7.7175 per bushel, up US$1.055 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 30 at US$5.295 per bushel, up 47 U.S. cents compared to the previous week.

The September Chicago Board of Trade soft wheat contract settled June 30 at US$5.26, up by 52.5 U.S. cents on the week.

The Canadian dollar settled June 30 at 77.06 U.S. cents, up roughly two cents on the week.

About the author


Phil Franz-Warkentin - MarketsFarm

Phil Franz-Warkentin writes for MarketsFarm specializing in grain and commodity market reporting.



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