MarketsFarm — Wheat prices on the Prairies during the week ended Thursday saw increases for Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) and declines for durum (CWAD).
The Russia-Ukraine border crisis spurred a good part of the increases in U.S. wheat markets. The ongoing threat of war could harm wheat production in both Black Sea countries.
The Canadian dollar was a pinch lower on the week, which provided support to Prairie wheat prices.
Read Also
U.S. grains: Wheat futures rise on supply snags in top-exporter Russia
U.S. wheat futures closed higher on Thursday on concerns over the limited availability of supplies for export in Russia, analysts said.
Average CWRS (13.5 per cent protein) wheat prices climbed $4-$8.10 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 $430.40 per tonne in southeastern Saskatchewan to $451.40 per tonne in northern Alberta.
Quoted basis levels varied from location to location and ranged from $78.70 to $99.70 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$339 to US$355.60 per tonne. That would put the currency-adjusted basis levels at about US$12.70 below to US$3.80 above 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 $10 below to $3 above the futures.
Average CPSR (11.5 per cent protein) wheat prices rose $8.40-$9.10 per tonne, but PDQ did not publish prices for several regions for most of the week. Available bids ranged from $398.50 per tonne in southeastern Saskatchewan to $419.60 per tonne in southern and northern Alberta.
Average durum prices stepped back by between 10 cents and $6.70, with bids ranging from $569.40 per tonne in southwestern Saskatchewan to $582.50 per tonne in northeastern Saskatchewan.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$9.5725 per bushel, up 15 cents on the week.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. March K.C. wheat was quoted Thursday at US$8.23 per bushel, gaining 22 cents compared to a week ago.
The March Chicago Board of Trade soft wheat contract settled at US$7.78 per bushel on Thursday, up 6.5 cents from the previous week.
The Canadian dollar eased back by less than a 10th of a cent during the week, to close Thursday at 78.77 U.S. cents.
— Glen Hallick reports for MarketsFarm from Winnipeg.
