MarketsFarm — Wheat bids in Western Canada were across the board during the week ended Thursday. Canada Western Red Spring (CWRS) wheat was mixed, Canada Prairie Spring Red (CPSR) was higher and Canada Western Amber Durum (CWAD) lower.
Gains in U.S. wheat markets provided support while strength in the Canadian dollar weighed on values.
Average CWRS (13.5 per cent protein) wheat prices were down $2 to up $2 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 $230 per tonne in western Manitoba, to as high as $253 per tonne in northern Alberta.
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Quoted basis levels varied from location to location and ranged from $23 to $46 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 U.S. dollars, CWRS bids ranged from US$180 to US$199 per tonne. That would put the currency adjusted basis levels at about US$8-$26 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 range from $7 to $21 below the futures.
Average CPSR (11.5 per cent protein) wheat prices were up $3-$4 per tonne. Bids ranged from $217 per tonne in eastern Saskatchewan to $235 per tonne in northern and southern Alberta.
Average durum prices were steady with bids ranging from $295 per tonne in northern Saskatchewan to $304 per tonne in southern Alberta.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$5.625 per bushel, increasing nine 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 March K.C. wheat contract was quoted Thursday at US$5.635 per bushel , rising 13.75 U.S. cents compared to the previous week.
The December Chicago Board of Trade soft wheat contract settled at US$5.965 per bushel on Thursday, up 12 U.S. cents from the previous week.
The Canadian dollar climbed above 78 U.S. cents during the week, gaining almost nine-10ths of a cent to close at 78.53 U.S. cents on Thursday.
— Glen Hallick reports for MarketsFarm from Winnipeg.
