MarketsFarm — Spring wheat bids in Western Canada moved lower during the week ended Thursday as a sharp gain in the Canadian dollar relative to its U.S. counterpart cut into basis levels.
The currency was up by roughly a penny on the week, settling Thursday at its highest level in seven weeks at 74.75 U.S. cents.
Average Canada Western Red Spring (CWRS, 13.5 per cent) wheat prices were down by between 80 cents and $5.80 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 $411.10 per tonne in southeastern Saskatchewan to as high as $433.80 per tonne in southern Alberta.
Read Also
U.S. grains: Corn rebounds from contract lows on short covering, bargain buying
Bargain buying and short covering lifted U.S. corn futures on Monday after the market slid to contract lows on expectations for strong U.S. output, traders said.
Quoted basis levels varied from location to location and ranged from $75.90 to $98.60 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 $8.20 to $20.90 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were down by $3.20-$8.50 per tonne, with prices ranging from $388.20 to $409.60 per tonne.
Average durum prices were also lower, losing $1-$5.30 per tonne. Prices ranged from $489.20 to $497.20 per tonne.
Spring wheat futures in Minneapolis were up by 3.25 U.S. cents per bushel in the March contract to settle Thursday at US$9.1225 per bushel.
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 Thursday at US$8.35 per bushel, down 4.75 U.S. cents per bushel compared to the previous week.
The March Chicago Board of Trade soft wheat contract settled at US$7.4275 per bushel on Thursday, down four U.S. cents on the week.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
