MarketsFarm — Wheat prices across the Prairies lost ground during the week ended Nov. 23, with Canada Western Red Spring and Canada Prairie Spring Red wheats incurring larger declines than those for durum.
Minneapolis and Kansas City wheat futures pulled back during the week, but Chicago nudged up a little. Ongoing issues with lacklustre U.S. export sales hampered the wheat complex, as did positioning ahead of the U.S. Thanksgiving holiday. A somewhat stronger Canadian dollar put a little bit of pressure on Prairie cash prices.
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Average CWRS (13.5 per cent protein) prices dropped $4.10-$7.10 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Those prices ranged from about $323.60 per tonne in northeastern Saskatchewan to $349 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from $56.10 to $81.50 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 Canadian prices to United States dollars, CWRS bids ranged from US$236.20 to US$254.80 per tonne. That would put the currency-adjusted basis levels at about US$12.80-$31.30 below the futures.
Looking at it the other way around, if the Minneapolis futures are converted to Canadian dollars, CWRS basis levels across Western Canada ranged from $9.30 to $22.90 below the futures.
Average CPSR (11.5 per cent protein) wheat lost $5.70-$10.70 per tonne. Bids ranged from $271.10 per tonne in southeastern Saskatchewan to $287.20 per tonne in southern Alberta.
Average CWAD prices were down by lesser amounts, dipping by between 20 cents and $1.80 per tonne. Bids ranged from $459.80 per tonne in northeastern Saskatchewan to $468.30 per tonne in western Manitoba.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based was quoted at US$7.175 per bushel on Nov. 23, giving up 8.5 U.S. cents on the 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$6.145 per bushel on Nov. 23, dropping 12.75 U.S. cents compared to a week earlier.
The December Chicago Board of Trade soft wheat contract settled at US$5.655 per bushel on Nov. 23, nudging up 2.25 U.S. cents on the week.
The Canadian dollar closed Nov. 23 at 73 U.S. cents, tacking on a little more than a quarter of a cent.
— Glen Hallick reports for MarketsFarm from Winnipeg.
