MarketsFarm — Spring wheat bids across Western Canada moved higher during the week ended Thursday, although the uncertain situation in Ukraine saw some wide price swings in U.S. wheat futures.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were up by $11.30-$16.30 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $463.80 per tonne in southeastern Saskatchewan to as high as $483.60 per tonne in northern Alberta.
Quoted basis levels varied from location to location and ranged from $67.30 to $87.20 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 $11.20 to $23.60 below the futures.
The Canadian dollar closed Thursday at 79.05 U.S. cents, up by about three-quarters of a cent relative to its U.S. counterpart on the week. The strengthening currency cause basis levels to weaken slightly.
Canada Prairie Red Spring (CPSR) wheat bids were up $5.80-$8.60 per tonne, with prices ranging from $430 to $445.70 per tonne.
Average durum prices were weaker, losing between 40 cents and $2.10 per tonne. Bids ranged from $565.90 to $581.60 per tonne.
Minneapolis (MGEX) hard red spring wheat futures — which in the grain trade track closely with CWRS wheat values in Canada — were choppy, but up on the week overall by Thursday, gaining 24 U.S. cents in the May contract to settle at US$10.79 per bushel.
Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The May K.C. wheat contract was quoted Thursday at US$10.9225 per bushel, up by 26.5 U.S. cents per bushel compared to the previous week.
The May Chicago Board of Trade soft wheat contract settled at US$10.98 per bushel on Thursday, which was up by 11 U.S. cents on the week.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
