MarketsFarm — Spring wheat bids in Western Canada climbed higher during the week ended Thursday, as a rally in U.S. futures more than countered any bearish influence from a rising Canadian dollar.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were up by $11.50-$13 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes).
Average CWRS prices ranged from about $262 per tonne in southeastern Saskatchewan to as high as $283.50 per tonne in northern Alberta.
Quoted basis levels varied from location to location and ranged from $27 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 everything into Canadian dollars, CWRS basis levels ranged from $9 to $22 below the futures.
Bids for Canada Prairie Spring Red (CPSR) wheat were also up sharply on the week, rising by $15-$16.50 per tonne. Prices ranged from $248 to $266 per tonne.
Average durum prices held within 50 cents of unchanged, with bids ranging anywhere from $300 to $308 per tonne.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$6.405 per bushel, up 37.25 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 March K.C. wheat contract was quoted Thursday at US$6.365 per bushel, up 38 U.S. cents compared to the previous week.
The March Chicago Board of Trade soft wheat contract settled at US$6.70 per bushel on Thursday, up 27.75 U.S. cents on the week.
The Canadian dollar closed Thursday at 79.03 U.S. cents, up a third of a cent compared to the previous week.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.