Prairie cash wheat: Bids mixed

MarketsFarm — Wheat bids in Western Canada were mixed during the week ended Thursday, with Canada Western Red Spring (CWRS) wheat mostly stronger while losses were seen in Manitoba.

Canada Prairie Spring Red (CPSR) and Canada Western Amber Durum (CWAD) wheats were on either side of unchanged.

Average CWRS (13.5 per cent protein) wheat prices were ranged from down by $4 to up by $3 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 $228 per tonne in western Manitoba, to as high as $251 per tonne in northern Alberta.

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Quoted basis levels varied from location to location and ranged from $25 to $48 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$177 to US$195 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 $6 to $20 below the futures.

Bids for CPSR wheat ranged from $213 per tonne in southeastern Saskatchewan to $232 per tonne in southern Alberta.

Average durum prices were on either side of unchanged, with bids ranging from $296 per tonne in northwestern Saskatchewan to $305 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$5.535 per bushel, down eight cents from the previous week.

K.C. 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$5.4975 per bushel, losing a fraction of a cent on the week.

The March Chicago Board of Trade soft wheat contract settled at US$5.8825 per bushel on Thursday, down 12 cents on the week.

The Canadian dollar closed at 77.64 U.S. cents on Thursday, gaining about an eighth of a cent on the week.

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