MarketsFarm — Wheat prices on the Canadian Prairies saw the red spring varieties take a hit during the week ended Thursday, while durum made gains.
There were sharp declines in the U.S. wheat complex, which weighed on Canadian cash prices while a weaker dollar helped to stymie further losses.
Despite the one-year anniversary of the Russian invasion of Ukraine, which is believed to have killed or wounded far in excess of 200,000 soldiers and civilians, the war has had little effect on price movement lately. However, grain supplies out of the Black Sea region being cut off remains a possibility, with the export deal set to expire in March.
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Average Canada Western Red Spring Wheat (CWRS, 13.5 per cent protein) wheat prices saw declines of $1.80-$6.60 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 $407.90 per tonne in southeastern Saskatchewan to $427.30 per tonne in northern Alberta.
Quoted basis levels varied from location to location and ranged from $75.80 to $95.10 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$301.10 to US$315.40 per tonne. That would put the currency-adjusted basis levels at about US$16.80-$31.10 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 ranged from $12.40 to $23 below the futures.
Average Canada Prairie Spring Red (CPSR, 11.5 per cent protein) wheat prices were down $3.90-$10.60 per tonne. Bids ranged from $390.40 per tonne in southeastern Saskatchewan to $404.70 per tonne in southern Alberta.
Average Canada Western Amber Durum (CWAD) prices added $4-$11.80 per tonne, with bids ranging from $456 per tonne in southwestern Saskatchewan to $467.10 per tonne in southern Alberta.
The May spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$9.04 per bushel, losing 19.75 U.S. cents on the week.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The May K.C. wheat contract was quoted Thursday at US$8.5675 per bushel, tumbling 30.5 U.S. cents compared to a week ago.
The May Chicago Board of Trade soft wheat contract settled at US$7.505 per bushel on Thursday, falling 25.75 U.S. cents from the previous week.
The Canadian dollar lost six-10ths of a cent during the week, with the loonie closing at 73.81 U.S. cents on Thursday.
— Glen Hallick reports for MarketsFarm from Winnipeg.
