Glacier FarmMedia | MarketsFarm—Despite temperatures exceeding 30 degrees Celsius on the Prairies and a weakened Canadian dollar, Western Canadian spring wheat prices were mixed and those for durum were lower during the week ended July 25.
The Canadian Grain Commission (CGC) reported 350,100 tonnes of wheat were exported during the week ended July 21, the second-last week of the 2023-24 marketing year. The amount was higher than the 306,000 tonnes exported the week before. Cumulative Canadian wheat exports for 2023-24 were 20.738 million tonnes, compared to 19.162 million one year earlier.
The Bank of Canada (BoC) cut its key interest rate by 25 basis points at 4.5 per cent on July 24, immediately putting pressure on the loonie.
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.
The United States Wheat Quality Council saw much improved spring wheat and durum yields in its annual tour in North Dakota. The average yield was estimated at 54.5 bushels per acre, up from 47.4 bu./acre last year and the five-year average of 42 bu./acre.
However, the U.S. Department of Agriculture reported 309,300 tonnes of wheat sold for export during the week ended July 18, near the lower end of trade expectations. Cumulative exports this marketing year were 2.463 million tonnes, slightly better than last year’s pace.
Canadian Western Red Spring (CWRS) wheat prices were on both sides of unchanged, losing C$0.60 per tonne to gaining C$3.20, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices were between C$272.50/tonne in southeast Saskatchewan to C$297.30 in southern Alberta.
Quoted basis levels ranged from between C$50.60 to C$75.50/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.
Accounting for exchange rates and adjusting Canadian prices to U.S. dollars (C$1=US$0.7236), CWRS bids were from US$197.20 to US$215.10/tonne. Currency adjusted basis levels ranged from US$6.70 to US$24.70 below the futures. If the futures were converted to Canadian dollars, basis levels would be C$4.90 to C$17.90 below the futures.
Meanwhile, Canadian Prairie Red Spring (CPRS) prices reported a decline of C$2.80 per tonne to an increase of C$3.60. The lowest average bid for CPRS was C$250.50 in southeast Saskatchewan, while the highest average bid was C$269.40 in northern Alberta.
The average prices for Canada Western Amber Durum (CWAD) were down C$0.40 to C$2.80 per tonne with bids between C$301.30 in northwestern Saskatchewan to C$316.80 in western Manitoba.
The September spring wheat contract in Minneapolis, which most CWRS contracts are based off of, was quoted at US$6.0375 per bushel on July 25 and 3.25 U.S. cents higher than the previous week.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The September contract was quoted at US$5.6150/bu., down 1.25 U.S. cents.
The September Chicago Board of Trade (CBOT) wheat contract gained 2.50 U.S. cents from the previous week at US$5.3775/bu.
The Canadian dollar dropped 1.04 U.S. cents to close at 72.36 cents U.S. on July 25.
