Glacier FarmMedia – Spring wheat bids in Western Canada moved higher during the week ended March 14, as wheat futures in the United States tried to recover off their lows.
Average Canada Western Red Spring (13.5%) wheat prices were up by C$1.10 to C$3.90 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$295.80 per tonne in southeastern Saskatchewan to as high as C$317.90 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from $55.00 to $77.20 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.
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When accounting for currency exchange rates by adjusting everything into Canadian dollars (C$1=US$0.7401) CWRS basis levels ranged from C$4.00 to C$16.20 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were up by C$1.50 to C$3.80 per tonne, with prices ranging from C$250.60 to C$275.90 per tonne.
Average durum prices were firmer on the week, rising by C$0.30 to as much as C$5.20 per tonne, ranging from C$393.00 to C$398.70 per tonne.
Spring wheat futures in Minneapolis were up by 0.50 cents per bushel in the May contract to settle at US$6.5525 per bushel on March 14. The contract had climbed as high as US$6.7725 per bushel at one point during the week before running into resistance.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The May Kansas City wheat contract was up by as much as 20 cents per bushel on the week at one point before the buying subsided for the contract to settle unchanged at US$5.7475 per bushel on March 14.
The May Chicago Board of Trade soft wheat contract settled at US$5.3225 per bushel on March 14, up by 3.75 cents on the week.
The Canadian dollar weakened relative to its United States counterpart, down by a fifth of a cent at 74.01 U.S. cents on March 14.
— Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.
