Prairie cash wheat: Bids weaken with seeding underway

MarketsFarm — Spring wheat bids in Western Canada lost ground during the week ended Thursday, with losses in U.S. futures and improving Prairie seeding weather weighing on values.

Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were down by 50 cents to $1 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $227 per tonne in northeastern Saskatchewan to as high as $244 per tonne in eastern Manitoba.

Quoted basis levels varied from location to location and ranged from $40 to $57 per tonne above the futures when using the grain company methodology of quoting the basis as the difference between U.S. dollar-denominated futures and Canadian dollar cash bids.

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When accounting for currency exchange rates by adjusting everything into Canadian dollars, CWRS basis levels ranged from $10 to $28 below the futures.

Bids for CPSR (Canada Prairie Spring Red) wheat also lower, losing $6.50-$8 per tonne. Prices ranged from $196 per tonne in southeastern Saskatchewan to $213 per tonne in northern Alberta.

Average durum prices were firmer, rising $1-$3 per tonne, with bids ranging anywhere from $288 to $303 per tonne.

The Minneapolis (MGEX) July spring wheat contract, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$5.08 per bushel, down three cents from the previous week.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The July K.C. wheat contract was quoted Thursday at US$4.5175 per bushel, down 27 cents compared to the previous week.

The July Chicago Board of Trade (CBOT) soft wheat contract settled Thursday at US$5.0225 per bushel, down 20.25 cents on the week.

The Canadian dollar closed Thursday at 71.16 U.S. cents, down roughly a third of a cent compared to the previous week.

— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.

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