Glacier Farm Media | MarketsFarm — Western Canadian cash prices for spring wheat were mostly higher during the week ended June 5, while those for amber durum moved lower.
Gains in the United States wheat complex provided support to Prairie cash prices. The increases are a result of the Russia-Ukraine war escalating and little progress, if any, in peace talks between the belligerents. Increases were tempered by improving U.S. ratings for spring and winter wheat.
A stronger Canadian dollar also kept a lid on cash prices, with the loonie rising by more than three-quarters of a cent.
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CWRS
Average CWRS (13.5%) prices dipped C$1.30 to increasing C$4.70 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$294.70 per tonne in western Manitoba to C$325.00 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from C$65.00 to C$95.30 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 U.S. dollars (C$1=US$0.7321), CWRS bids ranged from US$215.80 to US$238.00 per tonne. That would put the currency-adjusted basis levels at about US$14.00 below to US$8.20 above 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$10.20 below to C$6.00 above the futures.
CPRS & durum
Average CPRS (11.5%) wheat added C$3.50 to C$6.10 per tonne. Bids ranged from C$271.10 per tonne in southeastern Saskatchewan to C$295.60 per tonne in southern Alberta.
Average CWAD prices dropped C$7.50 to C$12.80 per tonne. Bids ranged from C$327.60 per tonne in northwestern Saskatchewan to C$336.60 per tonne in southern Alberta.
U.S. wheat complex
The July spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$6.2525 per bushel on June 5, up 9.75 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 July Kansas City wheat contract was quoted at US$5.4250 per bushel on June 5, rising 10.75 cents from a week ago.
The July Chicago Board of Trade soft wheat contract settled at US$5.4550 per bushel on June 5, advancing 11.50 cents.
