MarketsFarm — Wheat prices on the Canadian Prairies were mixed during the week ended Thursday.
Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) wheats incurred moderate gains, as Canada Western Amber Durum (CWAD) fell back.
Good upticks in the U.S. wheat complex fueled price increases in Western Canada, along with a weaker Canadian dollar. However, the loonie was making steady advances for a good part of the week before taking a nosedive Thursday.
Average CWRS (13.5 per cent protein) wheat prices advanced $12.40-$14.10 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 $516.10 per tonne in southeastern Saskatchewan to $532.20 per tonne in eastern Manitoba.
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Quoted basis levels varied from location to location and ranged from $66.30 to $82.50 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$408.20 to US$420.90 per tonne. That would put the currency-adjusted basis levels at about US$28.80-$41.60 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 $22.80 to $32.90 below the futures.
Average CPSR (11.5 per cent protein) wheat prices climbed $8-$9.10 per tonne. Bids ranged from $484 per tonne in southeastern Saskatchewan to $496 per tonne in northern Alberta.
Losses in average durum prices were as little as $1.10 to as much as $46, with bids ranging from $560 per tonne in southern Alberta to $600.40 per tonne in northeastern Saskatchewan.
The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$12.24 per bushel, rising 24.5 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 July K.C. wheat contract was quoted at US$11.5375 per bushel Thursday, up 10.25 U.S. cents compared to a week ago.
The July Chicago Board of Trade soft wheat contract settled at US$10.7125 per bushel on Thursday, pushing upward 13 U.S. cents from the previous week.
After attempting to reach 80 U.S. cents, the Canadian dollar was hit with its largest drop in 10 months on Thursday, down 0.29 U.S. cent on the week at 79.09 U.S. cents.
— Glen Hallick reports for MarketsFarm from Winnipeg.
