Glacier FarmMedia – Cash wheat prices across the Canadian Prairies varied the week ended July 18, despite the United States wheat complex being lower. Canada Prairie Red Spring Wheat was mixed, while Canadian Western Red Spring Wheat, and Canadian Western Amber Durum down hard, particularly durum prices.
Prospects for a good spring wheat crop in the U.S., pressure from the winter wheat harvest, and very little bullish news weighed on wheat values.
The Canadian dollar lost nearly four-tenths of a cent during the week, despite little movement in the loonie over the last few days.
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Average CWRS (13.5%) prices dropped $10.80 to tacking on C$2.90 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Those prices ranged from about C$271.60 per tonne in southeastern Saskatchewan to C$296.10 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from C$50.90 to C$75.50 per tonne above the futures when using the grain company methodology of quoting the basis as the difference between the U.S. dollar denominated futures and the Canadian dollar cash bids.
When accounting for currency exchange rates by adjusting Canadian prices to United States dollars (C$1=US$0.7301), CWRS bids ranged from US$198.30 to US$216.20 per tonne. That would put the currency adjusted basis levels at about US$4.40 to US$22.40 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 C$3.20 to C$16.30 below the futures.
Average CPRS (11.5%) wheat fell $7 to $15.30 per tonne. Bids ranged from C$247.90 per tonne in southeastern Saskatchewan to C$267.00 per tonne in southern Alberta.
Average CWAD prices dropped C$13.10 to C$15.70 per tonne. Bids ranged from C$301.70 per tonne in northwestern Saskatchewan to C$317.40 per tonne in western Manitoba.
The September spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$6.0050 per bushel on July 18, losing 18.25 cents on the week.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The September Kansas City wheat contract was quoted at US$5.6275 per bushel on July 18, dropping 21 cents from a week ago.
The September Chicago Board of Trade soft wheat contract settled at US$5.3525 per bushel on July 18, retreating 26 cents.
The Canadian dollar closed July 28 at 73.02 U.S. cents, giving up 39/100ths of a cent.
