Prairie cash wheat: Most bids see gains on the week

MarketsFarm — Wheat bids in Western Canada were mostly higher for the week ended Thursday.

Canada Western Red Spring (CWRS) wheat made the strongest gains, as Canada Prairie Spring Red (CPSR) was either side of steady. There were modest increases for Canada Western Amber Durum (CWAD).

Support came from the Canadian dollar losing about two-10ths of a cent, as well as gains in the Minneapolis market. Chicago and Kansas City wheat saw losses on the week.

Average CWRS (13.5 per cent protein) prices were up $7.50-$9.50 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 $232 per tonne in southeastern Saskatchewan, to as high as $249 per tonne in northern Alberta.

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Quoted basis levels varied from location to location and ranged from $39 to $56 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.

When accounting for currency exchange rates by adjusting Canadian prices to U.S. dollars, CWRS bids ranged from US$170 to US$183 per tonne. That would put the currency-adjusted basis levels at about US$9.50-$22 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 range from $7 to $16.50 below the futures.

Average CPSR (11.5 per cent protein) wheat prices were down $1 to up $1 per tonne. Bids ranged from $198 per tonne in northeastern Saskatchewan to $211 per tonne in northern Alberta.

Average durum prices were higher, with bids ranging from $284 per tonne in southwestern Saskatchewan to $298 per tonne in western Manitoba.

The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$5.2475 per bushel, rising 11.5 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$4.285 per bushel, falling 18.5 cents compared to the previous week.

The July Chicago Board of Trade soft wheat contract settled Thursday at US$4.835 per bushel, dropping 15.75 cents on the week.

The Canadian dollar closed Thursday at 73.59 U.S. cents, losing 0.19 cent on the week.

— Glen Hallick reports for MarketsFarm from Winnipeg.

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