Glacier FarmMedia MarketsFarm — Hard red spring wheat bids in Western Canada found some strength during the week ended May 22, as gains in the United States futures more than countered the bearish influence of a rising Canadian dollar.
Average Canada Western Red Spring (13.5%) wheat prices were up by C$7.50 to C$8.80 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from C$289.10 per tonne in southeastern Saskatchewan to as high as C$315.80 per tonne in southern Alberta.
Read Also
U.S. again halts cattle imports from Mexico over flesh-eating screwworms
The flesh-eating livestock pest New World screwworm has advanced closer to the U.S. border with Mexico, the U.S. Department of Agriculture said, prompting Washington to block imports of Mexican cattle just days after it allowed them to resume at a port of entry in Arizona.
Quoted basis levels varied from location to location and ranged from $68.60 to $95.20 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 everything into Canadian dollars (C$1=US$0.7210) CWRS basis levels ranged from C$5.10 above to C$8.70 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were also higher, up by C$5.40 to C$7.00 per tonne, with prices ranging from C$267.40 to C$292.40 per tonne.
Average durum prices were up by 80 cents to C$2.80 per tonne, ranging from C$335.30 to C$349.80 per tonne.
Spring wheat futures in Minneapolis were up by 20.25 cents per bushel in the July contract to settle at US$6.0025 per bushel on May 22.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The July Kansas City wheat contract was up by 11.75 cents at US$5.4000 per bushel on May 22.
The July Chicago Board of Trade soft wheat contract increased 11.75 cents on the week at US$5.4450 per bushel.
The Canadian dollar was up by over half a cent relative to its U.S. counterpart, at 72.10 U.S. cents on May 22.
