Spring wheat bids in Western Canada climbed higher during the week ended April 25, as a rally in United States futures provided support.
Chart-based speculative buying was behind much of the strength in the futures, as fund traders bought back some of their large net short position. Declining crop ratings for U.S. winter wheat, the ongoing conflict between Russia and Ukraine, and the possibility that India will need to import wheat to replenish its own tightening supplies all contributed to the gains.
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Average Canada Western Red Spring (13.5 per cent) wheat prices were up by C$18.70 to C$21.80 per tonne across the Prairies, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from C$320.00 per tonne in southeastern Saskatchewan to as high as C$339.20 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from $63.50 to $82.60 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$0.7305) CWRS basis levels ranged from C$6.40 to C$16.70 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were up by C$21.00 to C$21.80 per tonne, with prices ranging from C$291.50 to C$315.00 per tonne.
Average durum prices were up by C$1.50 to C$5.20 per tonne, ranging from C$396.90 to C$408.00 per tonne.
Spring wheat futures in Minneapolis were up by 55.25 cents per bushel in the July contract to settle at US$6.9825 per bushel on April 25.
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 65.25 cents at US$6.4050 per bushel on April 25.
The July Chicago Board of Trade soft wheat contract settled at US$6.2050 per bushel on April 25, up by 67.50 cents on the week.
The Canadian dollar strengthened relative to its United States counterpart, up by two-fifths of a cent at 73.05 U.S. cents on April 25.
