Black Sea Disruptions Send Canadian Wheat Prices Soaring

The escalating conflict between Russia and Ukraine has disrupted grain movement through the Black Sea, leading to an increase in global wheat prices. This has had a ripple effect on Canadian wheat markets, with Western Canadian wheat bids rising during the week ended Aug. 19.

Average Canada Western Red Spring (CWRS) wheat prices were up by C$4.80 to C$9.30 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ. Average prices ranged from C$285.80/tonne in southeastern Saskatchewan to as high as C$312.30/tonne in southern Alberta.

The quoted basis levels varied from location to location and ranged from $37.30 to $63.80/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. However, when accounting for currency exchange rates by adjusting everything into Canadian dollars (C$1=US$0.7200), CWRS basis levels ranged from C$17.00 to C$30.80 below the futures.