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Prairie cash wheat: Bids steady to lower

MarketsFarm — Wheat bids in Western Canada were lower for the week ended Thursday. Canada Western Red Spring (CWRS) wheat had larger declines, while Canada Prairie Spring Red (CPSR) and durum (CWAD) were steady to lower.

The Canadian dollar dropped almost a half cent during the week.

Average CWRS (13.5 per cent protein) wheat prices were down $1-$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 $212 per tonne in northeastern Saskatchewan to as high as $229 per tonne in southern Alberta.

Quoted basis levels varied from location to location and ranged from $24 to $41 per tonne above the futures when using the grain company methodology of quoting the basis as the difference between U.S. dolla- 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$160 to US$173 per tonne. That would put the currency-adjusted basis levels at about US$15-$28 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 $20 to $37 below the futures.

Wheat bids for CPSR were down slightly by less than $1 per tonne. Prices ranged from $177 per tonne in southeastern Saskatchewan to $201 per tonne in southern Alberta.

Average durum prices were steady to $1 lower, with bids ranging from $266 per tonne in western Saskatchewan to $286 per tonne in western Manitoba.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted Thursday at US$5.1275 per bushel, down six U.S. cents from the previous 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 Thursday at US$4.2225 per bushel, down two and a half U.S. cents compared to the previous week.

The December Chicago Board of Trade soft wheat contract settled at US$5.075 per bushel on Thursday, down five U.S. cents on the week.

The Canadian dollar closed Thursday at 75.43 U.S. cents, down approximately a half cent from the previous week.

— Glen Hallick reports for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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