MarketsFarm — Bids for red spring wheat in Western Canada went up, while durum prices declined for the week ended Thursday as traders and analysts await the latest data from the U.S. Department of Agriculture (USDA).
USDA released its monthly world agricultural supply/demand estimates (WASDE) report on Friday, including the first production estimates for new crop. U.S. wheat ending stocks for 2023-24 totalled 556 million bushels, below the previous year’s total and pre-trade expectations. However, world wheat ending stocks were looser than expected at 264.34 million tonnes.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
While rains fell on the dry winter wheat-growing areas of the U.S., they hardly improved growing conditions, if at all. Warmer weather should help advance seeding progress for spring wheat on the Canadian Prairies and the U.S. northern Plains, but dryness across parts of these regions is also a concern.
Negotiations are ongoing amongst Russia, Ukraine, Turkey and the United Nations to extend the Black Sea Grain Initiative, which is set to expire Thursday next week. However, Russia has said it will not agree to an extension unless it receives concessions.
Canada Western Red Spring (CWRS) prices gained $11.90 to $14.10 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices were between $375.60/tonne in southeastern Saskatchewan and $394.70 in southern Alberta.
Quoted basis levels ranged from $68.10 to $87.20/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.
Accounting for exchange rates and adjusting Canadian prices to U.S. dollars, CWRS bids were from US$278.70 to US$292.80/tonne. Currency-adjusted basis levels ranged from US$14.60 to US$28.80 below the futures. If the futures were converted to Canadian dollars, basis levels would be $10.90-$21.40 below the futures.
Meanwhile, Canada Prairie Spring Red (CPSR) prices were also higher, up $10-$14.10/tonne. The lowest average bid for CPSR wheat was $362.90/tonne in southeastern Saskatchewan, while the highest average bid was $385.80 in southern Alberta.
Average prices for Canada Western Amber Durum (CWAD) were down $12.50-$23.10 per tonne with bids between $404.30 in northeastern Saskatchewan and $417.90 in southern Alberta.
The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$8.3675 per bushel, 24.75 U.S. cents higher than 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$8.415/bu., up 43.25 U.S. cents.
The July Chicago Board of Trade (CBOT) wheat contract lost 17.75 U.S. cents from the previous week, at US$6.2725/bu. on Thursday.
The Canadian dollar was stronger, adding 0.49 of a U.S. cent to close Thursday at 74.2 U.S. cents.
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
