MarketsFarm – There were sharp increases in durum across Western Canada for the week ended July 27, while spring wheat incurred small to moderate declines.
There were gains in Minneapolis spring wheat, while Kansas City and Chicago winter wheat contracts slipped back.
At the beginning of the week there were steep increases for wheat as Russian launched missile and drone attacks on Ukraine’s ports on the Black Sea, but also its ports on the Danube River. By Wednesday those gains had been erased as concerns over the war subsided.
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The reduced severity of drought conditions across the Canadian Prairies and the United States Plains provided additional pressure on wheat.
Average Canadian Western Red Spring Wheat (CWRS, 13.5%) wheat prices declined 30 cents to C$5.40 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Those prices ranged from about C$387.10 per tonne in southeastern Saskatchewan to C$408.00 per tonne in northern Alberta.
Quoted basis levels varied from location to location and ranged from C$54.90 to C$75.80 per tonne above the futures when using the grain company methodology of quoting the basis as the difference between the U.S. dollar denominated futures and the Canadian dollar cash bids.
When accounting for currency exchange rates by adjusting Canadian prices to United States dollars (C$1=US$0.7575), CWRS bids ranged from US$293.30 to US$309.10 per tonne. That would put the currency adjusted basis levels at about US$23.20 to US$39.00 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 C$17.60 to C$29.50 below the futures.
Average Canada Prairie Red Spring (CPRS, 11.5%) wheat prices lost C$5.70 to C$12.70 per tonne. Bids ranged from C$362.90 per tonne in southeastern Saskatchewan to C$381.20 per tonne in northern Alberta.
Average Canadian Western Amber Durum (CWAD) prices jumped C$42.00 to C$58.90 per tonne, with bids ranging from C$459.20 per tonne in southern Alberta to C$471.90 per tonne in western Manitoba.
The September spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$9.0425 per bushel on July 27, bumping up 2.25 cents on the week.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The September Kansas City wheat contract was quoted at US$8.6650 per bushel on July 27, adding 8.25 cents compared to a week ago.
The September Chicago Board of Trade soft wheat contract settled at US$7.1275 per bushel on July 27, dropping 14.25 cents from the previous week.
The Canadian dollar eased back 0.17 of a cent at 75.75 U.S. cents, which provided some support to Canadian prices. However, during the week, the loonie pushed towards 76 U.S. cents before retreating.
— Glen Hallick reports for MarketsFarm from Winnipeg.
