Glacier FarmMedia – Spring wheat bids in Western Canada were mostly lower during the week ended Dec. 21, as strength in the Canadian dollar and losses in the United States futures weighed on values.
Average Canada Western Red Spring (13.5%) wheat prices were down by C$1.00 to C$4.90 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 C$311.30 per tonne in southeastern Saskatchewan to as high as C$334.00 per tonne in southern Alberta.
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Quoted basis levels varied from location to location and ranged from $48.90 to $71.60 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 everything into Canadian dollars (C$1=US$0.7513) CWRS basis levels ranged from C$8.60 to C$21.50 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were mixed, down 80 cents to up C$2.80 per tonne, with prices ranging from C$265.20 to C$289.50 per tonne.
Average durum prices were down by C$7.80 to C$12.20 per tonne. Prices ranged from C$441.30 to C$448.30 per tonne.
Spring wheat futures in Minneapolis were down by 3.00 cents per bushel in the March contract to settle at US$7.1425 per bushel on Dec. 21.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The March Kansas City wheat contract was down by 9.75 cents on the week to close at US$6.2675 per bushel on Dec. 21.
The March Chicago Board of Trade soft wheat contract settled at US$6.1250 per bushel on Dec. 21, down by 3.25 cents on the week.
The Canadian dollar strengthened relative to its United States counterpart, rising by nearly two-thirds of a cent to settle at 75.13 U.S. cents on Dec. 21.
— Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.
