Glacier FarmMedia—Cash wheat prices across the Canadian Prairies were hit hard during the week ended June 6, due to sharp declines in the United States wheat complex. That resulted in double-digit losses for Canada Prairie Red Spring Wheat, Canadian Western Red Spring Wheat and Canadian Western Amber Durum.
Good planting progress for U.S. spring wheat, and its first crop ratings of 2024, weighed on values. As did decent ratings for U.S. winter wheat as its harvest began to pick up the pace.
There was very little net change in the Canadian dollar during the week, as it flirted with either side of 73 U.S. cents.
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Average CWRS (13.5%) prices dropped C$15.60 to C$18.10 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$317.10 per tonne in southeastern Saskatchewan to C$335.60 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from C$57.50 to C$75.90 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$0.7307), CWRS bids ranged from US$231.70 to US$245.20 per tonne. That would put the currency adjusted basis levels at about US$14.50 to US$28.00 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$14.50 to C$20.40 below the futures.
Average CPRS (11.5%) wheat fell C$15.40 to C$17.10 per tonne. Bids ranged from C$297.50 per tonne in southeastern Saskatchewan to C$318.40 per tonne in northern Alberta.
Average CWAD prices lost C$7.90 to C$17.80 per tonne. Bids ranged from C$362.70 per tonne in northwestern Saskatchewan to C$376.90 per tonne in western Manitoba.
The July spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$7.0675 per bushel on June 6, losing 35.25 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 July Kansas City wheat contract was quoted at US$6.7800 per bushel on June 6, down 31.50 cents compared to a week ago.
The July Chicago Board of Trade soft wheat contract settled at US$6.3950 per bushel on June 6, tumbling 41.50 cents.
The Canadian dollar closed June 6 at 73.07 U.S. cents, easing back 4/100ths of a cent.
