MarketsFarm — Bids for western Canadian wheat were down all around for the week ended Thursday, with Canada Prairie Spring Red (CPSR) wheat having the largest losses.
U.S. wheat futures were lower as export sales continued to be weak. For the week of Nov. 3-9, 176,300 tonnes were sold for export, down 50 per cent from the previous week and 57 per cent from the four-week average. The International Grains Council added 1.7 million tonnes to its 2023-24 global wheat production estimate, to 786.6 million, while 1.8 million were added to its carryout projection at 264 million.
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Canada Western Red Spring (CWRS) wheat prices were down $2.50-$4.60 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices were between $329.70/tonne in southeastern Saskatchewan and $356 in southern Alberta.
Quoted basis levels ranged between $57.60 and $84/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$239.80 to US$259/tonne. Currency-adjusted basis levels ranged from US$13.10 to US$32.30 below the futures. If the futures were converted to Canadian dollars, basis levels would be $9.60-$23.50 below the futures.
Meanwhile, CPSR prices were down $7.80-$10.30/tonne. The lowest average bid for CPSR was $276.80/tonne in southeastern Saskatchewan, while the highest average bid was $295.80 in southern Alberta.
The average prices for Canada Western Amber Durum (CWAD) were 30 cents to $4.10 per tonne lower with bids between $460.10 in northeastern Saskatchewan and $468.70 in western Manitoba.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts are based, was quoted at US$7.26 per bushel on Thursday and 8.5 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$6.2725/bu., down 20 U.S. cents.
The December Chicago Board of Trade (CBOT) wheat contract lost 27.25 U.S. cents from the previous week at US$5.535/bu.
The Canadian dollar was slightly stronger, gaining 0.17 of a U.S. cent to close Thursday at 72.73 cents U.S.
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
