MarketsFarm — There were huge gains in wheat prices in Western Canada this past year. Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) wheats shot up by $200 per tonne or more, while those for Canada Western Amber Durum (CWAD) spiked well in excess of $400 per tonne.
Significant increases in U.S. wheat markets fueled the price hikes, while on the whole the Canadian dollar lost more than a penny, which added more support.
Average CWRS (13.5 per cent protein) prices jumped $225.70-$231.90 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 $461.30 per tonne in southeastern Saskatchewan to $482.30 per tonne in northern Alberta.
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Quoted basis levels varied from location to location and ranged from $84.50 to $105.50 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$356.90 to US$373.10 per tonne. That would put the currency adjusted basis levels at about US$3.70-$19.90 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 range from $2.90 to $15.40 below the futures.
Average CPSR (11.5 per cent protein) wheat prices gained $197.60-$211.10 per tonne. Bids ranged from $421.65 per tonne in southwestern Saskatchewan to $442.40 per tonne in northern Alberta.
Average durum prices skyrocketed $440.20-$475, with bids ranging from $742.30 per tonne in southern Alberta to $766 per tonne in northeastern Saskatchewan.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based off of, was quoted at US$10.255 per bushel on Dec. 21, vaulting US$4.585 on the year.
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 at US$8.415 per bushel on Dec. 21, climbing US$2.715 compared to a year ago.
The March Chicago Board of Trade soft wheat contract settled at US$7.99 per bushel on Dec. 21, up US$1.8925 from the previous year.
The Canadian dollar slipped back, as the loonie shed 1.27 U.S. cents over the year to close at 77.36 U.S. cents.
— Glen Hallick reports for MarketsFarm from Winnipeg.
