MarketsFarm — Western Canadian wheat bids took a tumble with durum prices having the largest losses during the week ended Oct. 26.
U.S. wheat futures were pressured throughout the week as rains fell on winter wheat-growing areas in the country, as well as in Argentina, Ukraine and Australia. Export sales for U.S. wheat were lower than in the previous week and near the low end of trade expectations. However, there are unconfirmed reports that Ukraine has suspended its use of the Black Sea grain shipping corridor due to dangers brought on by increased aviation activity by the Russian military.
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Canada Western Red Spring (CWRS) wheat prices were down $1.30-$4.90 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices were between $329.10/tonne in southeastern Saskatchewan and $354.60 in southern Alberta.
Quoted basis levels ranged from between $63 and $88.40/tonne above the futures when using the grain company methodology of quoting the basis as the difference between U.S. dollar-denominated futures and Canadian dollar cash bids.
Accounting for exchange rates and adjusting Canadian prices to U.S. dollars, CWRS bids were from US$238 to US$256.50/tonne. Currency-adjusted basis levels ranged from US$9.70 to US$28.10 below the futures. If the futures were converted to Canadian dollars, basis levels would be $7-$20.30 below the futures.
Meanwhile, Canada Prairie Spring Red (CPSR) prices were down $5.50-$8.40/tonne. The lowest average bid for CPSR was $279.70/tonne in southeastern Saskatchewan, while the highest average bid was $307.80 in southern Alberta.
The average prices for Canada Western Amber Durum (CWAD) were $9.30-$13 per tonne lower, with bids between $463.30 in northeastern Saskatchewan and $477.60 in southern Alberta.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts are based, was quoted at US$7.2425 per bushel on Oct. 26, 14.75 U.S. cents lower than the previous week.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The December K.C. wheat contract was quoted at US$6.5475/bu., down 21.5 U.S. cents.
The December Chicago Board of Trade (CBOT) wheat contract lost 14.5 U.S. cents from the previous week, closing Oct. 26 at US$5.795/bu.
The Canadian dollar was weaker, losing 0.58 of a U.S. cent to close at 72.33 U.S. cents on Oct. 26.
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
