MarketsFarm — Spring wheat bids in Western Canada were mostly higher during the week ended Thursday, as gains in U.S. futures and weakness in the Canadian dollar provided support.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were up by $5-$10.20 per tonne across the Prairies, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from $331.90 per tonne in northeastern Saskatchewan to as high as $358.20 per tonne in southern Alberta.
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Quoted basis levels varied from location to location and ranged from $60.40 to $86.60 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 $7.60 to $21.50 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were up by $1.80-$3 per tonne, with prices ranging from $287.20 to $313.30 per tonne.
Average durum prices were down by $9.70-$18.30 per tonne. Prices ranged from $476.30 to $486.90 per tonne.
Spring wheat futures in Minneapolis were up by 15.5 U.S. cents per bushel in the December contract to settle at US$7.39 per bushel on Thursday.
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 up by 1.25 U.S. cents on the week to close Thursday at US$6.7625 per bushel.
The December Chicago Board of Trade soft wheat contract settled at US$5.94 per bushel on Thursday, up by 22.5 U.S. cents on the week.
The Canadian dollar was down by roughly a third of a cent relative to its U.S. counterpart, finishing Thursday at 72.91 U.S. cents.
— Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.
