Prairie Wheat Weekly: Spring wheat bids tumble
Tariff threats, wheat futures pressure bids
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Glacier FarmMedia | MarketsFarm — Potential tariffs to be imposed on Canadian imports to the United States, as well as weakness in U.S. wheat futures were primary factors for declines in Western Canadian wheat bids for the week ended Feb. 27.
In a social media post on Feb. 27, U.S. President Donald Trump reiterated his intent to implement 25 per cent levies on Canadian and Mexican goods heading to the U.S. starting March 4.
Meanwhile, U.S. wheat export sales for the week ended Feb. 20 were well below expectations at 269,000 tonnes, and the U.S. Department of Agriculture’s Outlook Forum pegged 2025-26 wheat acres at 47 million, up 900,000 from last year.
Canadian wheat exports steady on the year
The Canadian Grain Commission reported 352,000 tonnes of wheat exported during the week ended Feb. 23, down from 392,600 tonnes the previous week. So far this marketing year, cumulative exports total 11.531 million tonnes, compared to 11.78 million one year earlier.
Canadian Western Red Spring wheat was down C$11.10 to C$18.60 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices were between C$264.30/tonne in western Manitoba to C$296.50 in southern Alberta.
Quoted basis levels ranged from between C$48.60 to C$80.80/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$0.6934), CWRS bids were from US$183.30 to US$205.60/tonne. Currency adjusted basis levels ranged from US$10.10 to US$32.40 below the futures. If the futures were converted to Canadian dollars, basis levels would be C$7.00 to C$22.50 below the futures.
Meanwhile, CPRS prices dropped C$11.60 to C$12.70 per tonne. The lowest average bid for CPRS was C$261.20 in southeast Saskatchewan, while the highest average bid was C$287.70 in southern Alberta.
Durum firm
The average prices for Canada Western Amber Durum (CWAD) were up C$1.30 to C$2.80 per tonne with bids between C$325.80 in northwest Saskatchewan to C$332.70 in southeast Saskatchewan.
The March spring wheat contract in Minneapolis, which most CWRS contracts are based off of, was quoted at US$5.8700 per bushel on Feb. 27, down 45.75 U.S. cents.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The March contract was quoted at US$5.7125/bu., down 36.25 U.S. cents.
The March Chicago Board of Trade (CBOT) wheat contract lost 38.75 U.S. cents at US$5.4675/bu.
Loonie weakens sharply
The Canadian dollar shed 1.14 U.S. cents to close at 69.34 cents on Feb. 27.
