Cash wheat: Bids up with U.S. futures, weak loonie

MarketsFarm — Wheat bids in Western Canada moved higher during the week ended Thursday, as gains in U.S. futures, weakness in the Canadian dollar and concerns over harvest delays in Western Canada all provided support.

The Canadian dollar was down by roughly a third of a cent relative to its U.S. counterpart on the week. Minneapolis spring wheat futures climbed to their highest levels in over a month, while Kansas City and Chicago winter wheat contracts also strengthened.

Average CWRS (Canada Western Red Spring, 13.5 per cent protein) wheat prices were up by $11-$12 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $217 per tonne in southeastern Saskatchewan to as high as $235 per tonne in southern Alberta.

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Quoted basis levels varied from location to location and ranged from $21 to $39 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 $25 to $43 below the futures.

Bids for CPSR (Canada Prairie Spring Red) wheat were up by $10-$11 per tonne. Prices ranged from $184.50 per tonne in southeastern Saskatchewan to $201 per tonne in southern Alberta.

Average durum prices were up by roughly $5-$7 per tonne across the Prairies, with bids ranging anywhere from $248 to $262 per tonne.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted Thursday at US$5.2025 per bushel, up 13 cents from the previous week.

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 quoted Thursday at US$4.095 per bushel, up six cents compared to the previous week.

The December Chicago Board of Trade soft wheat contract settled at US$4.88 per bushel on Thursday, up 4.25 cents on the week.

The Canadian dollar closed Thursday at 75.42 U.S. cents, a decline of roughly a third of a cent compared to the previous week.

— Phil Franz-Warkentin writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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