MarketsFarm — A rally in U.S. wheat futures together with a downturn in the Canadian dollar combined to take Prairie wheat bids sharply higher during the second week of May.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were up by $40.80-$45 per tonne during the week ended May 12, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes).
Average CWRS prices ranged from about $574.40 per tonne in northeastern Saskatchewan to as high as $591.80 per tonne in eastern Manitoba.
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Quoted basis levels varied from location to location and ranged from $114.90 to $132.30 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.
When accounting for currency exchange rates by adjusting everything into Canadian dollars, CWRS basis levels ranged from $4.30 to $14.60 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were up $44.90-$48.40 per tonne, with prices ranging from $548.40 to $561.30 per tonne.
Average durum prices were mixed, up 20 cents to down $14.90 per tonne. Bids ranged from $550 to $581.60 per tonne.
Spring wheat futures in Minneapolis were up sharply, gaining US$1.0625 per bushel in the July contract to settle at US$13.16 per bushel on Thursday.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The July K.C. wheat contract was quoted at US$12.70 per bushel on Thursday, up by 93 U.S. cents per bushel compared to the previous week.
The July Chicago Board of Trade soft wheat contract settled Thursday at US$11.7875 per bushel, up 72.25 U.S. cents on the week.
The Canadian dollar closed at 76.69 U.S. cents on Thursday, down by more than a penny relative to its U.S. counterpart on the week.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
