MarketsFarm — Minneapolis spring wheat futures climbed to contract highs during the week ended Thursday, which provided spillover support for Canadian cash bids. However, strength in the Canadian dollar was a bearish influence, tempering the upside in the cash market.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were up by $1.40-$2.50 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 $403.20 per tonne in southeastern Saskatchewan to as high as $421.40 per tonne in northern Alberta.
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Quoted basis levels varied from location to location and ranged from $50.40 to $68.70 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 $9.80 to $21.70 below the futures.
Bids for Canada Prairie Spring Red (CPSR) wheat were unavailable on the week.
Average durum prices were down by between 70 cents and $3.40, with bids ranging anywhere from $698.20 to $732.20 per tonne.
The Canadian dollar closed Thursday at 80.83 U.S. cents, up 1.2 cents relative to its U.S. counterpart.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$9.60 per bushel, up by 17.75 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$7.31 per bushel, down 10.25 U.S. cents compared to the previous week.
The December Chicago Board of Trade soft wheat contract settled at US$7.24 per bushel on Thursday, down by 17.25 U.S. cents on the week.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
