Glacier FarmMedia | MarketsFarm — Dry conditions on the Canadian Prairies and the United States Northern Plains raised wheat prices on both sides of the border during the week ended May 29.
Warm and dry conditions have not hindered seeding for Western Canadian wheat, but it remains to be seen whether it will be affected by heat stress.
Meanwhile, the Canadian Grain Commission reported 483,100 tonnes of wheat were exported during the week ended May 25, down from 622,900 the week before. With 10 weeks left in the marketing year, 17.908 million tonnes of wheat were exported, compared to 17.619 million one year earlier.
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In the U.S., the spring wheat crop was 87 per cent planted but it was rated at 45 per cent good to excellent, according to the U.S. Department of Agriculture, well below the trade’s expectations of 70 per cent. The U.S. winter wheat crop was rated 52 per cent good to excellent. However, lower export prices in Russia and a lack of supply concerns in Australia and India have put pressure on world prices.
Canadian Western Red Spring wheat was up C$5.60 to C$7.00 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$295.10/tonne in southeast Saskatchewan to C$321.70 in southern Alberta.
Quoted basis levels ranged from between C$67.80 to C$94.40/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$0.7243), CWRS bids were from US$213.70 to US$223/tonne. Currency adjusted basis levels ranged from US$13.50 below the futures to US$5.70 above them. If the futures were converted to Canadian dollars, basis levels would be C$9.80 below the futures to C$4.20 above.
Meanwhile, CPRS prices were down C$2.10 to up C$0.20 per tonne. The lowest average bid for CPRS was C$267.60 in southeast Saskatchewan, while the highest average bid was C$290.30 in southern Alberta.
The average prices for Canada Western Amber Durum (CWAD) were down C$0.30 to up C$16.60 per tonne with bids between C$340.40 in northwest Saskatchewan to C$351.90 in southern Alberta.
The July spring wheat contract in Minneapolis, which most CWRS contracts are based off of, was quoted at US$6.1550 per bushel on May 29, up 15.25 cents.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The July contract was down 8.25 cents at US$5.3175/bu.
The July Chicago Board of Trade (CBOT) wheat contract lost 10.5 cents at US$5.34/bu.
The Canadian dollar advanced 0.33 of a cent to close at 72.43 U.S. cents on May 29.
