MarketsFarm — Mounting drought concerns in the spring wheat-growing regions of Canada and the U.S. saw Prairie cash bids post solid gains during the week ended Thursday.
Average CWRS (13.5 per cent) wheat prices were up by $18-$21 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 $325 per tonne in southeastern Saskatchewan to as high as $345 per tonne in northern Alberta.
Quoted basis levels varied from location to location and ranged from $27.50 to $48 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 everything into Canadian dollars, CWRS basis levels ranged from $14 to $27 below the futures.
Bids for Canada Prairie Spring Red (CPSR) wheat were up by $12-$15.50 per tonne on the week, with prices ranging from $293.50 to $309 per tonne.
Average durum prices were up by $6-$11.50, with bids ranging anywhere from $321 to $332 per tonne.
The Canadian dollar closed Thursday at 81.2 U.S. cents, up roughly a fifth of a cent on the week.
The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$8.0925 per bushel, up 58 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$6.06 per bushel, up 20.75 cents compared to the previous week.
The July Chicago Board of Trade soft wheat contract settled at US$6.5125 per bushel on Thursday, up 12.25 cents on the week.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.