Glacier Farm Media – Wheat prices across the Canadian Prairies fell back for Canadian Western Red Spring Wheat and Canada Prairie Red Spring Wheat, while those for Canadian Western Amber Durum were mixed.
During the week ended Dec. 14, there were declines in Minneapolis spring wheat, as well as in Kansas City and Chicago winter wheat. A surge in the Canadian dollar, due to a weakened United States dollar, also weighed on Prairie cash prices.
Average CWRS (13.5%) prices dropped C$11.50 to C$14 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Those prices ranged from about C$312.80 per tonne in northeastern Saskatchewan to C$337.40 per tonne in southern Alberta.
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Quoted basis levels varied from location to location and ranged from C$50.60 to C$75.30 per tonne above the futures when using the grain company methodology of quoting the basis as the difference between the U.S. dollar denominated futures and the Canadian dollar cash bids.
When accounting for currency exchange rates by adjusting Canadian prices to United States dollars (C$1=US$0.7452), CWRS bids ranged from US$233.10 to US$251.50 per tonne. That would put the currency adjusted basis levels at about US$10.70 to US$29.10 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 ranged from C$8.00 to C$21.70 below the futures.
Average CPRS (11.5%) wheat lost C$10.90 to C$19.20 per tonne. Bids ranged from C$265.20 per tonne in southeastern Saskatchewan to C$290.30 per tonne in southern Alberta.
Average CWAD prices were either side of unchanged with losses of C$5.20 to gains of C$3 per tonne. Bids ranged from C$453.50 per tonne in southeastern Saskatchewan to C$457.90 per tonne in western Manitoba.
The March spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$7.1725 per bushel on Dec. 14, giving up 20 cents on the week.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The March Kansas City wheat contract was quoted at US$6.3650 per bushel on Dec. 14, dropping 31 cents compared to a week ago.
The March Chicago Board of Trade soft wheat contract settled at US$6.1575 per bushel on Dec. 14, falling 26.50 cents.
The Canadian dollar closed Dec. 14 at 74.52 U.S. cents, jumping nearly a full cent. Most of the loonie’s rise came after the U.S. Federal Reserve announced another interest rate freeze and suggested there could be rate cuts in 2024, which sent the U.S. dollar tumbling downward.
