Prairie cash wheat: Canadian bids drop with U.S. futures

Canadian dollar also down on week

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Published: June 30, 2023

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MGEX September 2023 hard red spring wheat with 20-day moving average and K.C. September 2023 hard red winter wheat (orange line). (Barchart)

MarketsFarm — Spring wheat bids in Western Canada dropped sharply during the week ended Thursday, as a selloff in U.S. futures weighed on values.

Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were down by $23.50-$25.40 per tonne across the Prairies, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from $365.50 per tonne in southeastern Saskatchewan to as high as $384.50 per tonne in northern Alberta.

Quoted basis levels varied from location to location and ranged from $68.80 to $87.80 per tonne above the futures when using the grain company methodology of quoting the basis as the difference between U.S. dollar-denominated futures and Canadian dollar cash bids.

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When accounting for currency exchange rates by adjusting everything into Canadian dollars, CWRS basis levels ranged from $5 to $15.80 below the futures.

Canada Prairie Spring Red (CPSR) wheat bids were down by $28.10-$30.50 per tonne, with prices ranging from $338.20 to $365.20 per tonne.

Average durum prices were steady to down $6.50 per tonne. Prices ranged from $372.40 to $393.90 per tonne.

Spring wheat futures in Minneapolis were down by 59 U.S. cents per bushel in the September contract to settle Thursday at US$8.255 per bushel.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The September K.C. wheat contract was down by 72.5 U.S. cents on the week to close Thursday at US$8 per bushel.

The September Chicago Board of Trade soft wheat contract settled at US$6.675 per bushel on Thursday, down 85.25 U.S. cents on the week.

The Canadian dollar was down by roughly half of a U.S. cent relative to its U.S. counterpart, finishing at 75.44 U.S. cents on Thursday.

— Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.

About the author

Phil Franz-Warkentin

Phil Franz-Warkentin

Editor - Daily News

Phil Franz-Warkentin grew up on an acreage in southern Manitoba and has reported on agriculture for over 20 years. Based in Winnipeg, his writing has appeared in publications across Canada and internationally. Phil is a trusted voice on the Prairie radio waves providing daily futures market updates. In his spare time, Phil enjoys playing music and making art.

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