Glacier FarmMedia – Canadian Western Red Spring and Amber Durum wheat bids lost ground for the most part, while those for Canadian Prairie Red Spring were mixed during the week ended Sept. 4.
High quality and high yield projections in Canada, the United States, Australia and Russia were pressuring global wheat prices. Dryness in spring wheat growing areas of North America allowed harvesting to progress over the past week as the U.S. Department of Agriculture reported that 72 per cent of the spring wheat crop was combined as of Sept. 1. Rain in the U.S. Southern Plains brought moisture ahead of winter wheat planting.
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CWRS wheat was down C$10.60 to up C$0.20 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices were between C$234.90/tonne in southeast Saskatchewan to C$261.20 in southern Alberta.
Quoted basis levels ranged from between C$31.50 to C$57.90/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$0.7231), CWRS bids were from US$169.80 to US$188.90/tonne. Currency adjusted basis levels ranged from US$14.50 to US$33.60 below the futures. If the futures were converted to Canadian dollars, basis levels would be C$10.50 to C$24.30 below the futures.
Meanwhile, CPRS prices were down C$1.90 to up C$1.30 per tonne. The lowest average bid for CPRS was C$210.90 in southeast Saskatchewan, while the highest average bid was C$236.30 in southern Alberta.
The average prices for CWAD were down C$8.70 to C$15.20 per tonne with bids between C$271.40 in northeast Saskatchewan to C$290.80 in southern Alberta.
The September spring wheat contract in Minneapolis, which most CWRS contracts are based off of, was quoted at US$5.495 per bushel on Sept. 4, down 5.75 cents.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The September contract was down seven cents at US$4.7975/bu.
The September Chicago soft red contract lost eight cents at US$5.0225/bu.
The Canadian dollar pulled back 0.39 of a cent to close at 72.31 U.S. cents on Sept. 4.
