Prairie cash wheat: Big jump for durum

U.S. futures, lower loonie supportive for cash wheat bids

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MarketsFarm — Wheat bids in Western Canada for the week ended Thursday were higher for Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) wheats, while there were sharp increases for Canada Western Amber Durum (CWAD).

Gains in U.S. wheat markets supported values, as did a steep drop for the Canadian dollar.

Average CWRS (13.5 per cent protein) wheat prices jumped $17.40-$19.90 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 $377 per tonne in southeastern Saskatchewan to $393.60 per tonne in southern Alberta.

Quoted basis levels varied from location to location and ranged from $40.10 to $56.70 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$294.70 to US$307.70 per tonne. That would put the currency-adjusted basis levels at about US$29.30-$42.25 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 $22.90 to $33 below the futures.

Price information from PDQ regarding CPSR was spotty this week, with ‘last week’s’ prices from Tuesday. Average CPSR (11.5 per cent protein) wheat prices were up $7.50-$9.60 per tonne. Bids ranged from $336.50 per tonne in southwestern Saskatchewan to $347.65 per tonne in northern Alberta.

Average durum prices jumped $75.05-$95.30, with bids ranging from $584.65 per tonne in northwestern Saskatchewan to $607.25 per tonne in southeastern Saskatchewan.

The September spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$9.045 per bushel, up three-quarters of a cent 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 at US$7.2825 per bushel on Thursday, rising 36.75 cents compared to the previous week.

The September Chicago Board of Trade soft wheat contract settled at US$7.4275 per bushel on Thursday, gaining 30 cents from the previous week.

As the U.S. dollar regained strength, the Canadian dollar pulled back 1.85 cents on the week, to 78.17 U.S. cents.

— Glen Hallick reports for MarketsFarm from Winnipeg.

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Glen Hallick - MarketsFarm

Glen Hallick writes for MarketsFarm specializing in grain and commodity market reporting.

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