Glacier FarmMedia | MarketsFarm – Cash prices for Canada Prairie Red Spring Wheat and Canadian Western Amber Durum were up for the week ended Sept. 12, while those for Canadian Western Red Spring Wheat were mostly higher.
The Canadian dollar pulled back during the week, falling more than four-tenths of a cent, which provided some support for Prairie prices.
Uncertainty surrounding wheat exports out of Russia and Ukraine this year underpinned the United States wheat markets. Meanwhile, 2023/24 European Union soft wheat exports of 4.80 million tonnes fell more than 23 per cent from the previous crop year.
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The September supply and demand report saw the U.S. Department of Agriculture maintain wheat ending stocks from August at 22.53 million tonnes and added 600,000 tonnes to the global carryover of 257.22 million.
Average CWRS (13.5%) prices dipped C$0.30 to adding C$5.20 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Those prices ranged from about C$254.70 per tonne in southeastern Saskatchewan to C$282.00 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from C$26.20 to C$53.60 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 Canadian prices to United States dollars (C$1=US$0.7358), CWRS bids ranged from US$187.40 to US$207.50 per tonne. That would put the currency adjusted basis levels at about US$21.00 to US$41.10 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 ranged from C$15.40 to C$30.20 below the futures.
Average CPRS (11.5%) wheat added C$0.50 to $2.90 per tonne. Bids ranged from C$226.80 per tonne in southeastern Saskatchewan to C$251.40 per tonne in southern Alberta.
Average CWAD prices rose C$1.50 to C$4.90 per tonne. Bids ranged from C$289.80 per tonne in northwestern Saskatchewan to C$305.10 per tonne in western Manitoba.
The December spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$6.2175 per bushel on Sept. 12, losing four cents on the week.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The December Kansas City wheat contract was quoted at US$5.8625 per bushel on Sept. 12, down 2.5 cents from a week ago.
The December Chicago Board of Trade soft wheat contract settled at US$5.7850 per bushel on Sept. 12, up 3.75 cents.
