MarketsFarm — Spring wheat bids in Western Canada moved lower during the week ended Thursday, as U.S. wheat futures posted losses — although softness in the Canadian dollar did provide some underlying support.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were down by $3.50-$6.40 per tonne across the Prairies, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes).
Average CWRS prices ranged from $417.20 per tonne in northeastern Saskatchewan to as high as $440.60 per tonne in northern Alberta.
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Quoted basis levels varied from location to location and ranged from $66 to $89.40 per 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.
When accounting for currency exchange rates by adjusting everything into Canadian dollars, CWRS basis levels ranged from $17.30 to $30.30 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were down by $7.30-$12.20 per tonne, with prices ranging from $398.70 to $422.40 per tonne.
Average durum prices were mixed, losing as much as $6.30 per tonne in northern Saskatchewan, while southern Alberta saw bids up by $3.40 per tonne. Prices ranged from $483.70 to $495.20 per tonne.
Spring wheat futures in Minneapolis were down by 14.25 U.S. cents per bushel in the March contract to settle Thursday at US$9.38 per bushel.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The March K.C. wheat contract was quoted Thursday at US$8.9025 per bushel, down 29.5 U.S. cents per bushel compared to the previous week.
The March Chicago Board of Trade soft wheat contract settled at US$7.83 per bushel on Thursday, down 30.5 U.S. cents on the week.
The Canadian dollar closed Thursday at 74.44 U.S. cents, down roughly half a cent relative to its U.S. counterpart on the week.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
