MarketsFarm — Wheat bids in Western Canada retreated by double digits for Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) wheats, while those for Canada Western Amber Durum (CWAD) declined more moderately.
Significant decreases in U.S. wheat markets and a stronger Canadian dollar combined to weaken Prairie prices.
Average CWRS (13.5 protein) wheat prices dropped $11.90-$13.50 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 $448.70 per tonne in southeastern Saskatchewan to $471.30 per tonne in northern Alberta.
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Quoted basis levels varied from location to location and ranged from $73 to $95.70 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$353.30 to US$371.10 per tonne. That would put the currency-adjusted basis levels at about US$4.50-$22.40 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 $3.60 to $17.60 below the futures.
Average CPSR (11.5 per cent protein) wheat prices fell $12.40-$19.80 per tonne. Bids ranged from $399.20 per tonne in southwestern Saskatchewan to $418.60 per tonne in northern Alberta.
Average durum prices were down $3-$4.70 with bids ranging from $718 per tonne in northwestern Saskatchewan to $727.90 per tonne in western Manitoba.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$10.2225 per bushel, giving up 20 U.S. cents on the 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 at US$7.965 per bushel on Thursday, retreating 45.75 U.S. cents compared to the previous week.
The March Chicago Board of Trade soft wheat contract settled at US$7.735 per bushel on Thursday, pulling back 41.5 U.S. cents from the previous week.
The Canadian dollar climbed higher, with the loonie up 0.71 of a U.S. cent this week to close Thursday at 78.74 U.S. cents.
— Glen Hallick reports for MarketsFarm from Winnipeg.
