Glacier FarmMedia – Wheat prices across the Canadian Prairies pulled back during the week ended Feb. 8. While there were moderate declines in Canadian Western Red Spring Wheat and Canada Prairie Red Spring Wheat, there were sharper losses for Canadian Western Amber Durum.
Pressure came from decreases in Minneapolis spring wheat, Kansas City red winter wheat and Chicago white winter wheat. A measure of support came from a weaker Canadian dollar.
Average CWRS (13.5%) prices were down C$3.40 to C$6.50 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 C$304.00 per tonne in western Manitoba to C$327.60 per tonne in southern Alberta.
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Quoted basis levels varied from location to location and ranged from C$52.80 to C$76.40 per tonne above the futures when using the grain company methodology of quoting the basis as the difference between the U.S. dollar denominated futures and the Canadian dollar cash bids.
When accounting for currency exchange rates by adjusting Canadian prices to United States dollars (C$1=US$0.7426), CWRS bids ranged from US$225.80 to US$243.30 per tonne. That would put the currency adjusted basis levels at about US$7.90 to US$25.50 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 C$5.90 to C$18.90 below the futures.
Average CPRS (11.5%) wheat lost C$8.70 to C$9.70 per tonne. Bids ranged from C$258.90 per tonne in southeastern Saskatchewan to C$284.20 per tonne in southern Alberta.
Average CWAD prices dropped C$18.50 to C$21.50 per tonne. Bids ranged from C$404.00 per tonne in northeastern Saskatchewan to C$421.20 per tonne in southern Alberta.
The March spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$6.8375 per bushel on Feb. 8, giving up 12.25 cents on the week.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The March Kansas City wheat contract was quoted at US$6.0100 per bushel on Feb. 8, falling 19.75 cents compared to a week ago.
The March Chicago Board of Trade soft wheat contract settled at US$5.8850 per bushel on Jan. 11, losing 13 cents.
The Canadian dollar closed Feb. 8 at 74.26 U.S. cents, losing about a third of a cent during the week.
