WINNIPEG – Wheat bids in Western Canada were up across the board for the week ended June 14. There were gains in Canadian Western Red Spring Wheat (CWRS), Canada Prairie Red Spring (CPRS) and Canadian Western Amber Durum (CWAD). Weakness in the Canadian dollar and gains in Kansas City and Chicago provided support. A decrease in Minneapolis wheat weighed on values.
Average CWRS (13.5 percent) wheat prices were up by C$8 to C$14 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 C$241 per tonne in southeastern Saskatchewan to as high as C$258 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from $35 to $51 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$0.7471) CWRS bids ranged from US$180 to US$193 per tonne. That would put the currency adjusted basis levels at about US$17 to US$29 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$22 to C$39 below the futures.
Wheat bids for CPSR were up C$10 to C$12 per tonne. Prices ranged from C$215 per tonne in southwestern Saskatchewan to C$243 per tonne in southern Alberta.
Average durum prices were up, with bids ranging anywhere from C$239 per tonne in northwestern Saskatchewan to C$253 per tonne in western Manitoba.
The July spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.6325 per bushel on June 14, down 5.5 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 July Kansas City wheat contract was quoted at US$4.7625 per bushel on June 14, up by 27.25 U.S. cents compared to the previous week.
The July Chicago Board of Trade soft wheat contract settled at US$5.3850 per bushel on June 14, up by 28.50 cents on the week.
The Canadian dollar closed at 74.71 U.S. cents on June 14, a decrease of about two-thirds a cent from the previous week.