Glacier FarmMedia | MarketsFarm — Western Canadian spring wheat prices showed some strength while durum prices declined during the week ended Nov. 7.
The Canadian Grain Commission reported 471,100 tonnes of wheat were exported during the week ended Nov. 3, slightly below the 509,400 tonnes shipped the week before. So far this marketing year, 4.962 million tonnes of Canadian wheat were sent out of the country, compared to 5.138 million at this time last year.
In the United States, wheat export sales lagged with 374,700 tonnes during the week ended Oct. 31, down nine per cent from the week before and down 20 per cent from the four-week average. Only 193,523 tonnes were inspected for export during that week, down 34 per cent from the week before but up 69 per cent from the previous year. High amounts of precipitation fell on parts of Texas, Kansas, Missouri, Iowa and Wisconsin last weekend. The U.S. winter wheat crop also improved four points at 41 per cent good to excellent at the start of the month.
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Canadian Western Red Spring (CWRS) gained C$1.90 to C$8.80 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices were between C$274.40/tonne in southeast Saskatchewan to C$299.10 in southern Alberta.
Quoted basis levels ranged from between C$53 to C$77.70/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.
Accounting for exchange rates and adjusting Canadian prices to U.S. dollars (C$1=US$0.7212), CWRS bids were from US$197.90 to US$215.70/tonne. Currency adjusted basis levels ranged from US$5.70 to US$23.50 below the futures. If the futures were converted to Canadian dollars, basis levels would be C$4.10 to C$16.90 below the futures.
Meanwhile, Canadian Prairie Red Spring (CPRS) prices added C$0.70 to C$3.20 per tonne. The lowest average bid for CPRS was C$248.50 in southeast Saskatchewan, while the highest average bid was C$275.20 in southern Alberta.
The average prices for Canada Western Amber Durum (CWAD) were down C$2.70 to up C$4.80 per tonne with bids between C$319.30 in northwest Saskatchewan to C$338.40 in southern Alberta.
The December spring wheat contract in Minneapolis, which most CWRS contracts are based off of, was quoted at US$6.0250 per bushel on Nov. 7 and 1.75 U.S. cents lower than the previous week.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The December contract was quoted at US$5.69/bu., down 0.25 of a U.S. cent.
The December Chicago Board of Trade (CBOT) wheat contract gained one U.S. cent from the previous week at US$5.7150/bu.
The Canadian dollar improved 0.26 of a U.S. cent to close at 72.12 cents U.S. on Nov. 7.
