MarketsFarm — Spring wheat bids in Western Canada moved lower during the week ended Friday, as losses in U.S. futures more than countered the supportive influence of the weakening Canadian dollar.
Seasonal harvest pressure contributed to the declines, as the U.S. winter wheat harvest progressed northward.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were down by $9.20-$11.70 per tonne during the week ended Thursday, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes).
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Average CWRS prices ranged from about $406.20 per tonne in southeastern Saskatchewan to as high as $426 per tonne in northern Alberta.
Quoted basis levels varied from location to location and ranged from $71.40 to $91.20 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.
When accounting for currency exchange rates by adjusting everything into Canadian dollars. CWRS basis levels ranged from $8 to $19.50 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were down by $8.70-$11.50 per tonne, with prices ranging from $368.70 to $377.10.
Average durum prices were mixed, posing solid gains in some locations and losing ground in others. Bids ranged from $459.20 to $478.50 per tonne.
Spring wheat futures in Minneapolis were down on the week, losing 24 U.S. cents per bushel in the September contract to settle at US$9.105 per bushel on Thursday.
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$8.4875 per bushel on Thursday, down 40.5 U.S. cents per bushel compared to the previous week.
The September Chicago Board of Trade soft wheat contract settled at US$7.95 per bushel on Thursday, down 41.5 U.S. cents on the week.
The Canadian dollar closed Thursday at 76.12 U.S. cents, down by nine-10ths of a cent relative to its U.S. counterpart on the week.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
