Prairie Wheat Weekly: Most Canadian cash prices step back with U.S. declines

Glacier FarmMedia—Cash wheat prices across the Canadian Prairies were mostly to the downside for the week ended June 27, as the United States wheat complex was steady to lower. That resulted in losses for Canada Prairie Red Spring Wheat, and Canadian Western Amber Durum, while Canadian Western Red Spring Wheat was mixed.

Although good planting progress for U.S. spring wheat weighed on values, recent storms in parts of the country tempered those declines.

There was very little net change in the Canadian dollar during the week, as it flirted with either side of 73 U.S. cents.

Average CWRS (13.5%) prices dropped 11 cents to C$4.30 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Those prices ranged from about C$278.20 per tonne in southeastern Saskatchewan to C$295.20 per tonne in northern Alberta.

Quoted basis levels varied from location to location and ranged from C$53.80 to C$70.80 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 United States dollars (C$1=US$0.7305), CWRS bids ranged from US$203.20 to US$215.60 per tonne. That would put the currency adjusted basis levels at about US$8.80 to US$21.20 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 ranged from C$6.40 to C$15.50 below the futures.

Average CPRS (11.5%) wheat was up 11 cents to down $1.32 per tonne. Bids ranged from C$258.30 per tonne in southeastern Saskatchewan to C$279.10 per tonne in northern Alberta.

Average CWAD prices dropped C$10.70 to C$14.00 per tonne. Bids ranged from C$340.20 per tonne in northwestern Saskatchewan to C$356.80 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$6.1075 per bushel on June 27, losing eight cents on the 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$5.9200 per bushel on June 27, unchanged from a week ago.

The July Chicago Board of Trade soft wheat contract settled at US$5.5975 per bushel on June 27, falling 13 cents.
The Canadian dollar closed June 27 at 73.05 U.S. cents, tacking on 5/100ths of a cent.