MarketsFarm — Wheat prices across the Canadian Prairies fell back during the week ended Nov. 2, with losses in Canada Western Red Spring and Canada Prairie Spring Red wheats, while those for Canada Western Amber Durum were mostly lower.
The U.S. wheat complex lost ground during the week, due in part to lacklustre export sales. However, those price declines, coupled with a weaker U.S. dollar, should make its wheat more competitive on the global market.
Average CWRS (13.5 per cent protein) prices dropped $4.80-$6.60 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 $323.90 per tonne in northeastern Saskatchewan to C$349.80 per tonne in southern Alberta.
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Quoted basis levels varied from location to location and ranged from $62.80 to $88.60 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$235.10 to US$253.90 per tonne. That would put the currency-adjusted basis levels at about US$7.30 to US$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 ranged from $5.30 to $18.90 below the futures.
Average CPSR (11.5 per cent protein) wheat lost $1.40-$6.10 per tonne. Bids ranged from $276.70 per tonne in southeastern Saskatchewan to $301.70 per tonne in southern Alberta.
Average CWAD prices were steady to lower, losing as much as $8.30 per tonne in southern Alberta. Bids ranged from $463.30 per tonne in northeastern Saskatchewan to $471.10 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$7.1075 per bushel on Nov. 2, falling 13.5 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$6.415 per bushel on Nov. 2, pulling back 13.25 U.S. cents compared to a week ago.
The December Chicago Board of Trade soft wheat contract settled at US$5.655 per bushel on Nov. 2, sinking 14 U.S. cents from the previous week.
Although the Canadian dollar finished on a higher note, it spent the better part of the week giving up ground. Only when the U.S. dollar reversed course, to tumble back, did the loonie find positive traction. It closed with a quarter-cent increase at 72.58 U.S. cents.
— Glen Hallick reports for MarketsFarm from Winnipeg.
