MarketsFarm — Wheat bids in Western Canada for the week ended Thursday were up for Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) wheat.
Bids for Canada Western Amber Durum (CWAD) were steady to higher.
The Canadian dollar was down by approximately four-10ths of a cent during the week, which provided support and countered the pressure from declines in the United States wheat markets.
Average CWRS (13.5 per cent) wheat prices were higher by $3-$5 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 $225 per tonne in northeastern Saskatchewan up to $249 per tonne in southern Alberta.
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Quoted basis levels varied from location to location and ranged from $30 to $46 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 Canadian prices to U.S. dollars, CWRS bids ranged from US$170 to US$182 per tonne. That would put the currency-adjusted basis levels at about US$13-$26 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 range from $10 to $20 below the futures.
Bids for CPSR wheat were up $2-$3 per tonne. Prices ranged from $195 per tonne in southeastern Saskatchewan to $215 per tonne in southern Alberta.
Average durum prices were steady to up $1, with bids ranging from $263 per tonne in southwestern Saskatchewan to $282 per tonne in western Manitoba.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$5.325 per bushel, down four cents from the previous week.
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$4.6775 per bushel, down 3.25 cents compared to the previous week.
The March Chicago Board of Trade soft wheat contract settled Thursday at US$5.5625 per bushel, down 4.25 cents on the week.
The Canadian dollar closed Thursday at 75.24 U.S. cents, down 0.42 of a cent from the previous week.
— Glen Hallick reports for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.
