Glacier FarmMedia – There were modest price increases for wheat on the Canadian Prairies during the week ended Feb. 29. However, as Canadian Western Red Spring Wheat and Canada Prairie Red Spring Wheat edged up, prices for Canadian Western Amber Durum were mixed.
The United States wheat complex was somewhat mixed as well, with Chicago prices dipping while those for Kansas City and Minneapolis pushed upward. Support for Canadian cash prices were bolstered by a drop in the dollar.
Average CWRS (13.5%) prices were up C$0.60 to C$3.50 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$292.10 per tonne in southeastern Saskatchewan to C$317.70 per tonne in southern Alberta.
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Quoted basis levels varied from location to location and ranged from C$49.90 to C$75.50 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$0.7369), CWRS bids ranged from US$215.20 to US$234.10 per tonne. That would put the currency adjusted basis levels at about US$8.10 to US$26.90 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$5.90 to C$19.80 below the futures.
Average CPRS (11.5%) wheat gained C$2.90 to C$6.50 per tonne. Bids ranged from C$251.90 per tonne in southeastern Saskatchewan to C$276.06 per tonne in northern Alberta.
Average CWAD prices lost C$4.30 to tacking on C$0.30 per tonne. Bids ranged from C$392.40 per tonne in northeastern Saskatchewan to C$407.50 per tonne in southern Alberta.
The May spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$6.5900 per bushel on Feb. 29, bumping up 3.50 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 May Kansas City wheat contract was quoted at US$5.8725 per bushel on Feb. 29, advancing 15.75 cents compared to a week ago.
The May Chicago Board of Trade soft wheat contract settled at US$5.7625 per bushel on Feb. 29, easing back three cents.
The Canadian dollar closed Feb. 29 at 73.69 U.S. cents, losing a little more than four-tenths of a cent during the week.
— Glen Hallick reports for MarketsFarm from Winnipeg.
