Prairie Wheat Weekly Spring wheat prices decline

Glacier FarmMedia – Western Canadian spring wheat bids were mostly lower, while durum prices were relatively steady during the week ended Aug. 14.

Variable weather which brought rains to the Prairies pressured wheat prices as well as weaker United States futures. However, a declining loonie gave some support to prices.

The U.S. Department of Agriculture reported wheat conditions at 49 per cent good to excellent as of Aug. 10. While the winter wheat crop was 90 per cent harvested, near the average pace, the spring wheat harvest was 16 per cent complete, six points behind the normal pace.

Canadian Western Red Spring wheat was down C$0.80 to up C$0.70 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$242.10/tonne in southeast Saskatchewan to C$269.30 in southern Alberta.

Quoted basis levels ranged from between C$31.90 to C$59.10/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$0.7243), CWRS bids were from US$175.30 to US$195.10/tonne. Currency adjusted basis levels ranged from US$15.10 to US$34.90 below the futures. If the futures were converted to Canadian dollars, basis levels would be C$11 to C$25.20 below the futures.

Meanwhile, CPRS prices were down C$3 to C$4.70 per tonne. The lowest average bid for CPRS was C$212.60 in southeast Saskatchewan, while the highest average bid was C$242.40 in southern Alberta.

The average prices for Canada Western Amber Durum (CWAD) were up C$0.10 to C$0.50 per tonne with bids between C$312.10 in northeast Saskatchewan to C$327.40 in southern Alberta.

The September spring wheat contract in Minneapolis, which most CWRS contracts are based off of, was quoted at US$5.72 per bushel on Aug. 14, down two cents.

The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The September contract was down 17.25 cents at US$5.0425/bu.

The September Chicago soft red contract lost 14.75 cents at US$5.0350/bu.

The Canadian dollar pulled back 0.28 of a cent to close at 72.43 U.S. cents on Aug. 14.