Glacier FarmMedia | MarketsFarm – Cash wheat prices for Canada Prairie Red Spring Wheat and Canadian Western Red Spring Wheat were higher for the week ended Aug. 29, while those for Canadian Western Amber Durum were mixed.
The futures market in the United States saw gains in Minneapolis spring wheat, as well as Chicago and Kansas City winter wheat.
Statistics Canada issued its principal field crops report on Aug. 28, projecting all wheat production in 2024/25 at 34.73 million tonnes, with spring wheat account for 25.35 million tonnes, durum at 6.02 million and winter wheat at three million.
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United States wheat slipped four points in the weekly crop progress report from the Department of Agriculture, raising some concerns about quality. However, the decline of French soft wheat crop, both in output and especially quality, weighed on values.
The Canadian dollar rose during the week, adding seven-tenths of a cent, which put some pressure on Prairie cash prices.
Average CWRS (13.5%) prices added C$1.40 to 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$237.70 per tonne in southeastern Saskatchewan to C$260.50 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from C$20.80 to C$44.50 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$0.7422), CWRS bids ranged from US$176.40 to US$193.30 per tonne. That would put the currency adjusted basis levels at about US$23.70 to US$40.50 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$17.60 to C$30.10 below the futures.
Average CPRS (11.5%) wheat tacked on C$1.80 to rising $10.60 per tonne. Bids ranged from C$203.70 per tonne in southeastern Saskatchewan to C$228.30 per tonne in southern Alberta.
Average CWAD prices were trimmed by 60 cents to gaining C$2.90 per tonne. Bids ranged from C$285.80 per tonne in northwestern Saskatchewan to C$300.90 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$5.9050 per bushel on Aug. 29, up 6.50 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$5.3700 per bushel on Aug. 29, rising 15.50 cents from a week ago.
The December Chicago Board of Trade soft wheat contract settled at US$5.4875 per bushel on Aug. 129, up 13.25 cents.
