MarketsFarm — Spring wheat bids in Western Canada fell in sympathy with U.S. futures during the week ended Thursday, although durum climbed higher on the back of production concerns in key durum-growing areas of southern Saskatchewan.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were down by $7.60-$9.70 per tonne across the Prairies, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from $341.70 per tonne in eastern Saskatchewan to as high as $367.70 per tonne in northern Alberta.
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Quoted basis levels varied from location to location and ranged from $52.20 to $75.30 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 everything into Canadian dollars, CWRS basis levels ranged from $14.60 to $27.20 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were down by $8.90-$15.90 per tonne, with prices ranging from $316 to $337 per tonne.
Average durum prices were up by $16.90-$24.10 per tonne. Prices ranged from $520.60 to $531 per tonne.
Spring wheat futures in Minneapolis were down by 29.25 U.S. cents per bushel in the September contract to settle at US$7.8775 per bushel on Thursday.
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 down by 34 U.S. cents on the week to close at US$7.33 per bushel on Thursday.
The September Chicago Board of Trade soft wheat contract settled at US$5.895 per bushel on Thursday, down 48.25 U.S. cents on the week.
The Canadian dollar was down by two-thirds of a cent relative to its U.S. counterpart, finishing at 73.94 U.S. cents on Thursday.
— Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.
