MarketsFarm — Spring wheat bids in Western Canada strengthened during the week ended Thursday, as gains in U.S. futures and weakness in the Canadian dollar provided support.
The advances came despite seasonal harvest pressure and an upward revision to Statistics Canada’s production estimate for the country’s spring wheat crop.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were up by $13.90-$17.40 per tonne during the week ended Thursday, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $382.40 per tonne in southeastern Saskatchewan to as high as $409.50 per tonne in southern Alberta.
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Quoted basis levels varied from location to location and ranged from $40.90 to $68 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 $23.70 to $39.30 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were up by $14.10-$16.70 per tonne, with prices ranging from $367.40 to $389.60 per tonne.
Average durum prices were higher, gaining $4.60-$8.90 per tonne. Bids ranged from $393.70 to $407.20 per tonne.
Spring wheat futures in Minneapolis were up by 30.5 U.S. cents per bushel in the December contract to settle Thursday at US$9.2875 per bushel.
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 Thursday at US$9.2625 per bushel, up 33.25 U.S. cents per bushel on the week.
The December Chicago Board of Trade soft wheat contract settled at US$8.45 per bushel on Thursday, up by 16 cents on the week.
The Canadian dollar closed at 75.76 U.S. cents on Thursday, down half a cent on the week relative to its U.S. counterpart.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
