MarketsFarm — Cash bids on the Prairies climbed higher for Canada Western Red Spring Wheat (CWRS) and Canada Prairie Spring Red (CPSR) wheats, but those for Canada Western Amber Durum (CWAD) incurred sharp decreases.
Gains in most U.S. wheat markets led to the increases on the Prairies, which were also aided by a weaker Canadian dollar.
Average CWRS (13.5 per cent protein) wheat prices increased $11.30-$17.10 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 $454.40 per tonne in southeastern Saskatchewan to $474.90 per tonne in northern Alberta.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
Quoted basis levels varied from location to location and ranged from $63.40 to $84 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$359.10 to US$375.30 per tonne. That would put the currency-adjusted basis levels at about US$15.60-$31.80 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 range from $12.30 to $25.20 below the futures.
Average CPSR (11.5 per cent protein) wheat prices climbed $24.80-$33.90 per tonne. Bids ranged from $432.60 per tonne in southwestern Saskatchewan to $440.20 per tonne in northern and southern Alberta.
Average durum prices fell back $12.60-$24.80 with bids ranging from $719.30 per tonne in northwestern Saskatchewan to $735.10 per tonne in western Manitoba.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$10.3675 per bushel, rising 20 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 December K.C. wheat contract was quoted Thursday at US$8.7325 per bushel, jumping 46 U.S. cents compared to the previous week.
The December Chicago Board of Trade soft wheat contract settled Thursday at US$8.3675 per bushel, gaining 16.75 U.S. cents from the previous week.
The Canadian dollar was lower, as the loonie gave up 0.37 U.S. cent on the week to close Thursday at 79.03 U.S. cents.
— Glen Hallick reports for MarketsFarm from Winnipeg.
