Prairie cash wheat: Bids trend higher

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MarketsFarm — Spring wheat bids in Western Canada were mostly higher during the week ended Friday, taking some direction from U.S. futures.

Midweek strength in the Canadian dollar had pressured basis levels, but the currency retreated to be relatively unchanged on the week.

Average Canada Western Red Spring (13.5 per cent protein) wheat prices were up by $1-$5.50 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $219 per tonne in eastern Saskatchewan to as high as $237 per tonne in northern Alberta.

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Quoted basis levels varied from location to location and ranged from $18 to $36 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 $15.50 to $26 below the futures.

Bids for CPSR (Canada Prairie Spring Red) wheat were mostly firmer on the week, rising as much as $1.50 per tonne. Prices ranged from $192 per tonne in southeastern Saskatchewan to $210 per tonne in southern Alberta.

Average durum prices were up by $1-$1.50 per tonne, with bids ranging anywhere from $267 to $276.50 per tonne.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$5.4725 per bushel, up eight U.S. cents from 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 Thursday at US$4.7575 per bushel, up 3.5 U.S. cents compared to the previous week.

The December Chicago Board of Trade soft wheat contract settled at US$5.5325 per bushel on Thursday, up 4.5 U.S. cents on the week.

The Canadian dollar closed Thursday at 76.2 U.S. cents, relatively unchanged compared to the previous week.

— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.

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