Western Canadian wheat bids mostly lower

Wheat bids in Western Canada were mostly lower for the week ended October 24. Losses were observed in Canadian Western Red Spring Wheat (CWRS) and Canadian Red Spring (CPSR), with Canadian Western Amber Durum (CWAD) staying steady to slightly lower.

Average CWRS (13.5 per cent) wheat prices were down by C$7 to C$8 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 C$227 per tonne in southeastern Saskatchewan to as high as C$243 per tonne in southern Alberta.

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Quoted basis levels varied from location to location and ranged from $29 to $40 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 U.S. dollars (C$1=US$0.7648) CWRS bids ranged from US$173 to US$186 per tonne. That would put the currency adjusted basis levels at about US$17 to US$30 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 C$22 to C$38 below the futures.

Wheat bids for CPSR were down by C$7 to C$9 per tonne. Prices ranged from C$189 per tonne in southeastern Saskatchewan to C$203 per tonne in southern Alberta.

Average durum prices were steady to lower, with bids ranging from C$267 per tonne in southwestern Saskatchewan to C$288 per tonne in southern Alberta.

The December spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.40 per bushel on October 24, down 12 cents from the previous week.

The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The December Kansas City wheat contract was quoted at US$4.195 per bushel on October 24, down 11 cents from the previous week.

The December Chicago Board of Trade soft wheat contract settled at US$5.16 per bushel on October 24, down 9.5 cents on the week.

The Canadian dollar closed at 76.48 U.S. cents on October 24, an increase of a third of a cent from the previous week.

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