MarketsFarm — Wheat prices declined on the Canadian Prairies during the week ended Thursday, as a stronger Canadian dollar and losses in the U.S. wheat complex weighed on values.
Pressure came from expanded all-wheat acres to be planted in the United States, 48.84 million expected in 2023 versus the 45.7 million planted in 2022. The U.S. weather outlook, which called for precipitation in the country’s wheat-growing areas, put a little bit more weight on values.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices pulled back by between 80 cents and $5.80 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 $411.10 per tonne in southeastern Saskatchewan to $433.80 per tonne in southern Alberta.
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Quoted basis levels varied from location to location and ranged from $78.90 to $101.60 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$305.20 to US$322 per tonne. That would put the currency-adjusted basis levels at about US$10.20 to US$27 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$7.50 to C$20.10 below the futures.
Average Canada Prairie Spring Red (CPSR, 11.5 per cent protein) wheat prices lost $3.20-$8.50 per tonne. Bids ranged from $388.20 per tonne in southeastern Saskatchewan to $409.60 per tonne in southern Alberta.
Average Canada Western Amber Durum (CWAD) prices were down $1-$5.30 per tonne, with bids ranging from $489.20 per tonne in southeastern Saskatchewan to $497.20 per tonne in southern Alberta.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$9.04 per bushel, down five U.S. cents on the week.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The March K.C. wheat contract was quoted Thursday at US$8.32 per bushel, giving up 7.75 U.S. cents compared to a week ago.
The March Chicago Board of Trade soft wheat contract settled at US$7.345 per bushel on Thursday, dropping 12.25 U.S. cents from the previous week.
The Canadian dollar tacked on about half a U.S. cent during the week, closing at 74.23 U.S. cents on Thursday.
— Glen Hallick reports for MarketsFarm from Winnipeg.
