MarketsFarm — While peace prospects in Ukraine brought pressure onto wheat futures early on, a U.S. Department of Agriculture report caused the prices for two major western Canadian wheat varieties to close at different levels for the week ended Thursday.
On the Chicago Board of Trade (CBOT), wheat futures declined when talks between Russia and Ukraine regarding a ceasefire in the latter resumed. However, wheat prices then rose after no progress was made towards peace in the region.
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U.S. wheat futures closed higher on Thursday on concerns over the limited availability of supplies for export in Russia, analysts said.
Then, USDA on Thursday released its projected plantings report showing a slight increase in wheat acres for 2022. While analysts expected additional spring wheat acres, USDA reported a slight decrease, pushing Minneapolis (MGEX) prices upward.
Dry weather in the U.S., a lack of competitiveness from U.S. wheat in overseas markets and a stronger Canadian dollar also factored in prices.
Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were mixed, dropping $2.60 to gaining $1.80 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices were between $465.10 in southeastern Saskatchewan and $485.40 in northern Alberta.
Quoted basis levels ranged between $67.30 and $87.50 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$372.20 to US$388.40 per tonne. Currency-adjusted basis levels ranged from US$9.40 to US$25.60 below the futures. If the futures were converted to Canadian dollars, basis levels would be $7.50-$20.50 below the futures.
Average Canada Prairie Spring Red (CPSR, 11.5 per cent protein) prices slipped $18.40-$21.50 per tonne. The lowest average bid for CPSR wheat was $414.20 in southeastern Saskatchewan, while the highest average bid was $428.60 in northern Alberta.
Meanwhile, average Canada Western Amber Durum prices were higher, gaining 80 cents to $3.90 per tonne, with bids ranging from $565 in southern Alberta to $584.90 in northeastern Saskatchewan.
The May spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$10.795 per bushel, 3.25 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 May K.C. wheat contract was quoted Thursday at US$10.2975, falling 65.25 U.S. cents.
The May Chicago Board of Trade wheat contract dropped 79.75 U.S cents from the previous week in the same time frame, to US$10.06.
The Canadian dollar gained 0.32 of a U.S. cent from the previous week to close Thursday at 80.03 U.S. cents.
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
