Glacier FarmMedia | MarketsFarm — Hard red spring wheat bids in Western Canada moved lower during the week ended May 15, as losses in the United States futures weighed on values. However, weakness in the Canadian dollar was supportive and basis levels improved.
Average Canada Western Red Spring (13.5%) wheat prices were down by C$0.80 to C$7.10 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$281.60 per tonne in southeastern Saskatchewan to as high as C$307.30 per tonne in southern Alberta.
Read Also
U.S. grains: Wheat futures rise on supply snags in top-exporter Russia
U.S. wheat futures closed higher on Thursday on concerns over the limited availability of supplies for export in Russia, analysts said.
Quoted basis levels varied from location to location and ranged from $68.50 to $94.20 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$0.7151) CWRS basis levels ranged from C$4.70 above to C$8.40 below the futures. That compares with C$2.80 above to C$10.30 below the previous week.
Meanwhile, Canada Prairie Spring Red (CPSR) wheat bids were higher, up by C$5.80 to C$9.50 per tonne, with prices ranging from C$261.90 to C$285.40 per tonne.
Average durum prices were steady, up only 10 to 20 cents and ranging from C$332.60 to C$347.80 per tonne.
Spring wheat futures in Minneapolis were down by 20.75 cents per bushel in the July contract to settle at US$5.8000 per bushel on May 15.
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 3.50 cents at US$5.2825 per bushel on May 15.
The July Chicago Board of Trade soft wheat contract was up by 3.50 cents on the week at US$5.3275 per bushel.
The Canadian dollar was down by nearly half a cent relative to its U.S. counterpart, at 71.59 U.S. cents on May 15.
