MarketsFarm — Spring wheat bids in Western Canada softened during the week ended Wednesday, as choppiness in U.S. futures and strength in the Canadian dollar weighed on values.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were down by $1.60-$6.90 per tonne across the Prairies, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from $386.30 per tonne in southeastern Saskatchewan to as high as $407.90 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from $65.40 to $87 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.
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When accounting for currency exchange rates by adjusting everything into Canadian dollars, CWRS basis levels ranged from $13.20 to $25.20 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were down by $5.60-$8.30 per tonne, with prices ranging from $373.10 to $394.70 per tonne.
Average durum prices lost $3-$3.90 per tonne. Prices ranged from $441.40 to $452.30 per tonne.
Spring wheat futures in Minneapolis hit their highest levels of the past month during the week but ran into resistance and were down by 6.25 U.S. cents per bushel in the May contract to settle Wednesday at US$8.735.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The May K.C. wheat contract also saw some choppy activity but was down by 10 U.S. cents on the week to close Wednesday at US$8.615 per bushel.
The May Chicago Board of Trade soft wheat contract settled at US$6.82 per bushel on Wednesday, down 22.75 U.S. cents on the week.
The Canadian dollar was up by nearly half of a cent relative to its U.S. counterpart, finishing on Wednesday at 74.31 U.S. cents.
— Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.
