Glacier FarmMedia — Spillover from newfound strength in soybeans drove United States wheat futures higher and Western Canadian bids followed suit during the week ended Oct. 28.
Last weekend, U.S. President Donald Trump said he believed a deal to China was possible, which led to a rally in soybeans. On Oct. 27, both the U.S. and China agreed to a framework to a new trade agreement. Rising soybean prices carried over into both corn and wheat.
The International Grains Council raised its global wheat production forecast for 2025-26 by eight million tonnes at 827 million, which would be a record high and up 1.1 per cent from the previous season. Production forecasts for Russia, Argentina and the U.S. were raised as well. Global carryout is also expected to total 275 million tonnes, which would be a three-year high.
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Canadian Western Red Spring (CWRS) wheat was C$5.30 to C$13 per tonne higher, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices were between C$245/tonne in southeast Saskatchewan to C$270.80 in southern Alberta.
Quoted basis levels ranged from between C$38.60 to C$64.40/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.
Accounting for exchange rates and adjusting Canadian prices to U.S. dollars (C$1=US$0.7164), CWRS bids were from US$175.50 to US$194/tonne. Currency adjusted basis levels ranged from US$12.40 to US$30.90 below the futures. If the futures were converted to Canadian dollars, basis levels would be C$8.90 to C$22.10 below the futures.
Meanwhile, Canadian Prairie Red Spring (CPRS) prices were up C$10.60 to C$12.50 per tonne. The lowest average bid for CPRS was C$227.40 in southeast Saskatchewan, while the highest average bid was C$252.10 in southern Alberta.
The average prices for Canadian Western Amber Durum (CWAD) were down C$0.10 to C$0.50 per tonne with bids between C$276.30 in northwest Saskatchewan to C$293.40 in western Manitoba.
The December spring wheat contract in Minneapolis, which most CWRS contracts are based off of, was quoted at US$5.6175 per bushel on Oct. 28, up 17 cents.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The December contract gained 35 cents at US$5.20/bu.
The December Chicago soft red contract rose 28.75 cents at US$5.29/bu.
The Canadian dollar moved up 0.32 of a cent to close at 71.64 U.S. cents on Oct. 28.
