Prairie Wheat Weekly: Spring wheat rises, durum falls back

Published: November 22, 2024

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Markets are quieter-than-normal as farmers continue to be busy with harvest operations. Photo: Thinkstock

Glacier Farm Media | MarketsFarm – Spring wheat cash prices were higher for the week ended Nov. 21, but those from amber durum stepped back.

Support came from higher United States wheat futures, that were pushed upward by heightened tensions in the Russia-Ukraine war. However, Prairie prices also felt the weight of a stronger Canadian dollar.

Average CWRS (13.5%) prices rose C$9.30 to C$13.20 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$270.80 per tonne in southeastern Saskatchewan to C$295.30 per tonne in southern Alberta.

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Quoted basis levels varied from location to location and ranged from C$54.70 to C$79.30 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$0.7163), CWRS bids ranged from US$194.00 to US$211.50 per tonne. That would put the currency adjusted basis levels at about US$4.50 to US$22.10 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$3.20 to C$15.80 below the futures.

Average CPRS (11.5%) wheat gained C$9.60 to C$13.30 per tonne. Bids ranged from C$246.90 per tonne in southeastern Saskatchewan to C$273.10 per tonne in southern Alberta.

Average CWAD prices lost C$7.00 to C$9.70 per tonne. Bids ranged from C$310.30 per tonne in northwestern Saskatchewan to C$332.30 per tonne in southern Alberta.

The December spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.8800 per bushel on Nov. 21, adding 21.50 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 December Kansas City wheat contract was quoted at US$5.5550 per bushel on Nov. 21, gaining 22.50 cents from a week ago.

The December Chicago Board of Trade soft wheat contract settled at US$5.4875 per bushel on Nov. 21, up 18.50 cents.

The loonie advanced 0.34 of a cent on the week, settling at 71.63 U.S. cents.

About the author

Glen Hallick - MarketsFarm

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

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