MarketsFarm — Hard red spring wheat bids in Western Canada lost ground during the week ended Thursday, as the bearish influence of a strengthening Canadian dollar more than offset supportive influence from gains in U.S. futures.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were down $5.50-$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 about $224.50 per tonne in northeastern Saskatchewan to as high as $243.50 per tonne in southern Alberta.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
Quoted basis levels varied from location to location and ranged from $29 to $48.50 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 $15.50 to $25.50 below the futures.
Bids for CPSR wheat also lower, losing $7-$12.50 per tonne. Prices ranged from $198 per tonne in southeastern Saskatchewan to $218 per tonne in southern Alberta.
Average durum prices were narrowly mixed, up 50 cents to down $2 per tonne, with bids ranging anywhere from $277.50 to $295.50 per tonne.
The May spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted Thursday at US$5.3125 per bushel, up 11.25 cents from the previous week.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The May K.C. wheat contract was quoted Thursday at US$4.8725 per bushel, up 21.75 cents compared to the previous week.
The May Chicago Board of Trade soft wheat contract settled Thursday at US$5.695 per bushel, up 34 cents on the week.
The Canadian dollar closed Thursday at 71.04 U.S. cents, up roughly two cents compared to the previous week.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
