Prairie wheat bids down with U.S. futures

Winnipeg – Wheat bids in Western Canada were down for another week, as trade tensions continued to weigh on American futures markets.

Depending on the location, average Canada Western Red Spring (13.5 percent CWRS) wheat prices were down by C$6 to C$13 per tonne across the Prairie provinces, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about C$216 per tonne in western Manitoba, to as high as C$229 in southern Alberta. Northwestern Saskatchewan was an outlier, with the price rising $6 to $220 per tonne.

Quoted basis levels varied from location to location and ranged from $19 to $32 per 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 Canadian prices to U.S. dollars (C$1=US$0.7594) CWRS bids ranged from US$164 to US$174 per tonne. That would put the currency adjusted basis levels at about US$23 to US$33 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 range from C$30 to C$43 below the futures.

Canada Prairie Red Spring (CPRS) wheat bids fell anywhere from C$8 to C$10 per tonne depending on the location. Prices ranged from C$182 to C$200 per tonne.

Average durum prices were lower, with bids in Western Canada coming in at about C$235 to C$259 per tonne.

The September spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.3675 per bushel on June 29, down by 24.25 U.S. cents from the previous week.

The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The September Kansas City wheat contract was quoted at US$4.8850 per bushel on June 29, down by 17 U.S. cents compared to the previous week.

The September Chicago Board of Trade soft wheat contract settled at US$5.0125 on June 29, which was down by three U.S. cents on the week.

The Canadian dollar settled at 75.94 U.S cents on June 29, which was up by 0.80 cents on the week.

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