Glacier FarmMedia—Western Canadian bids for Canadian Prairie Red Spring (CPRS) and durum wheat were higher, but there were declines in Canadian Western Red Spring prices during the period of March 21 to 27.
Traders in the United States looked forward to the U.S. Department of Agriculture’s Prospective Plantings and Quarterly Stocks reports, which were released on March 28. The average trade guess for 2024-25 all wheat acres in the U.S. is 47.3 million, down 2.3 million from the previous year. Spring wheat acres are expected to make up 10.9 million. U.S. wheat stocks are projected to rise by 61 million bushels on average at 1.05 billion.
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Despite dry and deteriorating growing conditions over the past two weeks, SovEcon raised its Russian wheat crop forecast by 400,000 tonnes at 94 million, up 1.2 million from last year. Dry conditions will remain at the start of April on the Prairies, with little precipitation and high temperatures rising above 10 degrees Celsius in Saskatchewan and Alberta.
CWRS wheat prices were down C$0.60 to C$3.40 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices were between C$294.50/tonne in southeast Saskatchewan to C$317.50 in southern Alberta.
Quoted basis levels ranged from between C$55.30 to C$78.30/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.
Accounting for exchange rates and adjusting Canadian prices to U.S. dollars (C$1=US$0.7360), CWRS bids were from US$216.70 to US$233.60/tonne. Currency adjusted basis levels ranged from US$5.60 to US$22.50 below the futures. If the futures were converted to Canadian dollars, basis levels would be C$4.10 to C$16.50 below the futures.
Meanwhile, CPRS prices were up C$0.30 to C$1.20/tonne. The lowest average bid for CPRS was C$258.70 in southeast Saskatchewan, while the highest average bid was C$281.40 in northern Alberta.
The average prices for Canada Western Amber Durum (CWAD) were up C$3.70 to C$6.60 per tonne with bids between C$396.90 in northwest Saskatchewan to C$403.40 in southeast Saskatchewan.
The May spring wheat contract in Minneapolis, which most CWRS contracts are based off of, was quoted at US$6.51 per bushel on March 27 and 5.5 U.S. cents lower than the previous week.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The May contract was quoted at US$5.7825/bu., down 3.5 U.S. cents.
The May Chicago Board of Trade (CBOT) wheat contract gained 0.75 of a U.S. cent from the previous week at US$5.475/bu.
The Canadian dollar dropped 0.34 of a U.S. cent to close at 73.60 cents U.S. on March 27.
