MarketsFarm — Wheat bids in Western Canada for the week ended Thursday spiked sharply for Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) wheats, while gains for Canada Western Amber Durum (CWAD) were much more subdued.
Steep increases in U.S. wheat markets supported values — as did the Canadian dollar, by losing more than half a U.S. cent.
Average CWRS (13.5 per cent protein) prices jumped $11.90-$17.20 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 $337.40 per tonne in southeastern Saskatchewan to $358.10 per tonne in northern Alberta.
Quoted basis levels varied from location to location and ranged from $40.10 to $60.70 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 Canadian prices to U.S. dollars, CWRS bids ranged from US$272.205 to US$288.90 per tonne. That would put the currency-adjusted basis levels at about US$8.40-$25.10 below the futures.
Looking at it the other way around, if the Minneapolis futures are converted to Canadian dollars, CWRS basis levels across Western Canada range from $6.80 to $20.30 below the futures.
Average CPSR (11.5 per cent protein) wheat prices vaulted $12.40 to $15.70 per tonne. Bids ranged from $305.90 per tonne in southeastern Saskatchewan to $321.80 per tonne in northern Alberta.
Average durum prices gained between 90 cents and $3.20 on the week, with bids ranging from $323.90 per tonne in northwestern Saskatchewan to $332.80 per tonne in western Manitoba.
The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$8.6875 per bushel, up 59.5 U.S. cents from the previous week.
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 Thursday at US$6.315 per bushel, rising 25.5 U.S. cents compared to the previous week.
The July Chicago Board of Trade soft wheat contract settled at US$6.585 per bushel on Thursday, gaining 7.25 U.S. cents from the previous week.
As the U.S. dollar regained strength, the Canadian dollar pulled back 0.52 cents on the week, at 80.68 U.S. cents.
— Glen Hallick reports for MarketsFarm from Winnipeg.