MarketsFarm — Wheat bids in Western Canada were mostly stronger during the week ended Thursday, with gains observed in CWRS and CPSR wheats, while durum saw small losses.
Average CWRS (Canada Western Red Spring, 13.5 per cent protein) wheat prices were 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 $227 per tonne in northeastern Saskatchewan to as high as $245 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from $36 to $54 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$162 to US$174 per tonne. That would put the currency-adjusted basis levels at about US$16-$29 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 $12 to $21 below the futures.
Bids for CPSR (Canada Prairie Spring Red) wheat ranged from $202 per tonne in southeastern Saskatchewan to $221 per tonne in southern Alberta.
Average durum (CWAD) prices were slightly lower, with bids ranging from $286 per tonne in northwestern Saskatchewan to $300 per tonne in western Manitoba.
The May spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Wednesday at US$5.30 per bushel, up 11 cents from the previous week.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The May K.C. wheat contract was quoted Wednesday at US$4.78 per bushel, gaining 14 cents compared to the previous week.
The May Chicago Board of Trade soft wheat contract settled at US$5.4825 per bushel on Wednesday, gaining 6.5 cents on the week.
The Canadian dollar closed Wednesday at 71.26 U.S. cents, gaining some strength after losing considerable ground due to negative impact of the COVID-19 pandemic on global financial markets.