MarketsFarm — The spring wheat harvest coming to a close in the Prairie provinces and cuts in production estimates south of the border have caused mixed bids in Western Canada for the week ended Thursday.
All three Prairie provinces have either completed or have nearly completed spring wheat combining, bringing harvest pressure to prices.
Meanwhile, the U.S. Department of Agriculture (USDA) on Thursday released its latest harvest and supply estimates, which showed a larger-than-expected cut in wheat production, three per cent from August to 1.646 billion bushels. The total is 10 per cent less than 2020’s harvest.
A weakening Canadian dollar and rising U.S. wheat futures have also affected prices.
Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were up by between 10 cents and $3 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices were between $387.90 in southeastern Saskatchewan and $406.50 in southern Alberta.
Quoted basis levels ranged from between $52.60 and $71.30 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.
Accounting for exchange rates and adjusting Canadian prices to U.S. dollars, CWRS bids were US$306.10-$320.80 per tonne. Currency-adjusted basis levels ranged from US$14.50 to US$29.20 below the futures. If the futures were converted to Canadian dollars, basis levels would be $11.40-$23.10 below the futures.
Average Canada Prairie Spring Red (CPSR, 11.5 per cent protein) wheat prices were down $2.70-$3.90 per tonne. The lowest average bid was $349.90 in southwestern Saskatchewan, while the highest average bid was $361.40 in northern Alberta.
Average Canada Western Amber Durum (CWAD) prices rose $46.60-$62.10 per tonne, with bids ranging from $647.30 in southern Alberta to $706 in northeastern Saskatchewan.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$9.125 per bushel on Thursday, one cent higher than the previous week.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The December K.C. wheat contract was quoted at US$7.3175, up 11.75 cents.
The December Chicago Board of Trade (CBOT) wheat contract was up 7.75 cents from the previous week at US$7.255 on Thursday.
The Canadian dollar lost 0.12 of a cent from the previous week to close Thursday at 78.91 U.S. cents.
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.