MarketsFarm — Wheat prices on the Canadian Prairies were down hard for the week ended Thursday.
Canada Western Red Spring (CWRS), Canada Prairie Spring Red (CPSR) and Canada Western Amber Durum (CWAD) wheats incurred sharp losses as prices tumbled in U.S. markets.
Additional pressure came from Statistics Canada’s report on planting intentions for 2022-23. The federal agency on Tuesday pegged its estimate of total wheat acres at nearly 25.4 million, up from its April call and 8.7 per cent more than what was planted the previous year.
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A drop in the Canadian dollar softened the blow somewhat, as the loonie lost more than six-10ths of a cent on the week.
Average CWRS (13.5 per cent protein) wheat prices fell $40-$47.20 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 $417 per tonne in southeastern Saskatchewan to $436 per tonne in northern Alberta.
Quoted basis levels varied from location to location and ranged from $73.70 to $92.60 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$321.20 to US$335.70 per tonne. That would put the currency-adjusted basis levels at about US$7.60-$22.20 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 $5.90 to $17.10 below the futures.
Average CPSR (11.5 per cent protein) wheat prices retreated $40.10-$47.20 per tonne. Bids ranged from $378.70 per tonne in southwestern Saskatchewan to C$388.30 per tonne in southern Alberta.
Declines in average durum prices were $78.80-$90.60 per tonne, with bids ranging from $463.70 per tonne in southern Alberta to $473.60 per tonne in western Manitoba.
The September spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$9.345 per bushel, losing 55.5 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 September K.C. wheat contract was quoted at US$8.8925 per bushel on Thursday, giving up 62.5 U.S. cents compared to a week ago.
The September Chicago Board of Trade soft wheat contract settled Thursday at US$8.365 per bushel, pulling back 47.5 U.S. cents on the week.
After falling below 77 U.S. cents due to weakening crude oil prices and a more powerful U.S. dollar, the Canadian dollar recovered some lost ground but still lost more than six-10ths, having settled at 77.01 U.S. cents on Thursday.
— Glen Hallick reports for MarketsFarm from Winnipeg.
