Glacier FarmMedia | MarketsFarm — Declining winter wheat crop conditions in the United States, as well as dryness on the Canadian Prairies and a weaker Canadian dollar raised Western Canadian wheat bids during the week ended June 19.
The U.S. Department of Agriculture reported crop conditions for winter wheat slipped two points at 52 per cent good to excellent compared to the week before as of June 15. Meanwhile, those for spring wheat were up four points at 57 per cent good to excellent, but well below its rating of 76 per cent one year ago. Four per cent of the U.S. spring wheat crop is headed, two points below the five-year average.
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Dryness has persisted across the Prairies so far in the month of June, but rains are expected from southwestern Alberta to central Saskatchewan this weekend. However, there is uncertainty about how much precipitation will fall onto the region.
Canadian Western Red Spring wheat was up C$4.90 to C$6.60 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$299.80/tonne in western Manitoba to C$330.10 in southern Alberta.
Quoted basis levels ranged from between C$56.70 to C$86.10/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$0.7287), CWRS bids were from US$218.50 to US$240.60/tonne. Currency adjusted basis levels ranged from US$2.50 to US$24.60 below the futures. If the futures were converted to Canadian dollars, basis levels would be C$1.80 to C$17.90 below the futures.
Meanwhile, CPRS prices were up C$3.60 to C$6.20 per tonne. The lowest average bid for CPRS was C$274.70 in southeast Saskatchewan, while the highest average bid was C$301.80 in southern Alberta.
The average prices for Canada Western Amber Durum (CWAD) were up C$5.30 to C$9.60 per tonne with bids between C$337.10 in northwest Saskatchewan to C$348.30 in southern Alberta.
The September spring wheat contract in Minneapolis, which most CWRS contracts are based off of, was quoted at US$6.6150 per bushel on June 19, up 29.75 cents.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The September contract was up 49 cents at US$5.8650/bu.
The September Chicago Board of Trade (CBOT) wheat contract gained 48.75 cents at US$5.9050/bu.
The Canadian dollar lost 0.59 of a cent to close at 72.87 U.S. cents on June 19.
