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.
Read Also
Feed Grain Weekly: Prices in a slow decline
Seasonal weakness and recent rains across the Prairies pressured feed grain prices according to a Moose Jaw-based trader.
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.
