Glacier FarmMedia — Hard red spring wheat bids in Western Canada were weaker during the week ended Aug. 7, as a move to five-year lows in the United States futures weighed on prices.
While Canada’s spring wheat crop remains in need of moisture in many areas, the U.S. winter wheat harvest is nearing completion. While support was uncovered at the lows, the influx of grain into the commercial system south of the border weighed heavily on the futures markets in early August.
That general weakness spilled into Canadian cash bids, and average Canada Western Red Spring (13.5%) wheat prices were down by C$5.60 to C$15.60 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from C$241.70/tonne in southeastern Saskatchewan to as high as C$269.60/tonne in southern Alberta.
Read Also
U.S. grains: Chicago corn, wheat choppy amid demand uptick, ample supply
Chicago wheat, corn and soybean futures chopped up and down but ended lower on Friday as traders weighed a bounce in demand fuelled by low prices against expectations of ample supply and upcoming U.S. government crop forecasts.
Quoted basis levels varied from location to location and ranged from $30.80 to $58.70/tonne above the futures when using the grain company methodology of quoting the basis as the difference between the U.S. dollar denominated futures and the Canadian dollar cash bids. When accounting for currency exchange rates by adjusting everything into Canadian dollars (C$1=US$0.7271) CWRS basis levels ranged from C$10.80 to C$25.60 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were also lower, falling by C$10.00 to C$13.60/tonne, with prices ranging from C$216.20 to C$247.10/tonne.
Average durum prices were down C$8.10 to C$14.10/tonne, ranging from C$311.90 to C$327.20/tonne.
Minneapolis spring wheat futures lost 3.75 cents per bushel in the September contract to settle at US$5.7400/bu. on Aug. 7.
Hard red winter wheat futures were down by 4.75 cents in the September contract on the week at US$5.2150/bu.
The September Chicago soft wheat contract lost five cents on the week at US$5.1825/bu.
The Canadian dollar was up by a half of a cent relative to its U.S. counterpart, at 72.71 U.S. cents on Aug. 7.
