Prairie wheat bids down with U.S. futures

Winnipeg, June 4 (CNS Canada) – Wheat bids in Western Canada fell for the week ended June 1, following the lead of United States futures.

Depending on the location, average Canada Western Red Spring (13.5 percent CWRS) wheat prices were down by C$12 to C$16 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$233 per tonne in northwestern Saskatchewan, to as high as C$262 in southern Alberta.

Quoted basis levels varied from location to location and ranged from $10 to $39 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$0.7714) CWRS bids ranged from US$180 to US$202 per tonne. That would put the currency adjusted basis levels at about US$21 to US$43 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$27 to C$56 below the futures.

Canada Prairie Red Spring (CPRS) wheat bids fell anywhere from C$7 to C$12 per tonne depending on the location. Prices ranged from C$220 to C$234 per tonne.

Average durum prices were lower, with bids in Western Canada coming in at about C$238 to C$265 per tonne.

The July spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$6.0400 per bushel on June 1, down by 40.25 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 July Kansas City wheat contract was quoted at US$5.4075 per bushel on June 1, down by 23.25 U.S. cents compared to the previous week.

The July Chicago Board of Trade soft wheat contract settled at US$5.2325 on June 1, which was down by 19.75 U.S. cents on the week.

The Canadian dollar settled at 77.14 U.S cents on June 1, which was up by 0.06 cents on the week.

About the author

Ashley Robinson - MarketsFarm's recent articles


Stories from our other publications