MarketsFarm — Spring wheat bids across Western Canada moved higher during the week ended Thursday as gains in U.S. futures and a weaker tone in the Canadian dollar provided support.
Russia’s invasion of Ukraine contributed to gains in wheat futures, but the volatile situation led to large price swings in the markets with values backing away from their highs after the reporting period.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were up by $4.90-$10.20 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 $438.10 per tonne in northeastern Saskatchewan to as high as $458.20 per tonne in northern Alberta.
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.
Quoted basis levels varied from location to location and ranged from $65 to $85.10 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 $12.50 to $24.70 below the futures.
The Canadian dollar closed at 77.93 U.S. cents on Thursday, down 0.8 cents relative to its U.S. counterpart on the week.
Spring wheat futures in Minneapolis climbed higher, gaining 63 U.S. cents on the week in the May contract to settle Thursday at US$10.2025 per bushel.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to Canada Prairie Spring Red (CPSR) wheat in Canada. The May K.C. wheat contract was quoted at US$9.66 per bushel on Thursday, up US$1.3825 compared to the previous week.
CPSR cash wheat bids were up $21.20-$26.50 per tonne, with prices ranging from $421.40 to $442 per tonne.
Average durum prices were weaker, losing $1.70-$8.70 per tonne. Bids ranged from $565.30 to $579.20 per tonne.
May CBOT (Chicago Board of Trade) soft wheat settled Thursday at US$9.3475 per bushel, up US$1.30 on the week.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
