MarketsFarm — Bids for Canada Western Red Spring (CWRS) wheat were mixed for the week ended Aug. 10, while those for Canada Prairie Spring Red (CPSR) and durum were on the rise.
Scattered showers brought moisture across the Prairies, but attention has now turned to harvesting a wheat crop greatly affected by hot and dry conditions all summer.
Tensions are still strong between Russia and Ukraine as the former attacks grain export facilities on the Black Sea and the Danube River. However, the European Union is opening up land routes to facilitate grain movement from Ukraine.
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CWRS prices dropped $2.60 to added $2.10 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices were between $349.30/tonne in northeastern Saskatchewan and $373.60 in southern Alberta.
Quoted basis levels ranged from between $49.10-$73.40/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.
Accounting for exchange rates and adjusting Canadian prices to U.S. dollars, CWRS bids were from US$260.50 to US$278.60/tonne. Currency-adjusted basis levels ranged from US$21.60 to US$39.70 below the futures. If the futures were converted to Canadian dollars, basis levels would be $16.10-$26.90 below the futures.
Meanwhile, CPSR prices increased $2.60-$4.90/tonne. The lowest average bid for CPSR wheat was $324.90/tonne in southeastern Saskatchewan, while the highest average bid was $350.20 in southern Alberta.
Average prices for Canada Western Amber Durum (CWAD) were $5.60-$16.50 per tonne higher, with bids between $501.50 in northeastern Saskatchewan and $507.20 in southern Alberta.
The September spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Aug. 10 at US$8.17 per bushel, 16.5 U.S. cents lower than 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 at US$7.67/bu., down 0.5 U.S. cent.
The September Chicago Board of Trade (CBOT) wheat contract gained 10.75 U.S. cents from the previous week, closing Aug. 10 at US$6.3775/bu.
The Canadian dollar was weaker, losing 0.32 U.S. cent to close at 74.58 U.S. cents on Aug. 10.
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
