MarketsFarm — Wheat prices on the Canadian Prairies for the week ended Thursday were mixed as CWRS wheat was either side of unchanged and CPSR was down slightly. Meanwhile, durum made modest gains.
Declines in the U.S. wheat complex put pressure on western Canadian cash prices, but those declines were countered by a weaker Canadian dollar that benefitted the export market.
Average CWRS (Canada Western Red Spring, 13.5 per cent protein) wheat prices ranged from dipping 20 cents to tacking on $2.10 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 $419.30 per tonne in northeastern Saskatchewan to $440.50 per tonne in northern Alberta.
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Quoted basis levels varied from location to location and ranged from $82.50 to $103.70 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$307.40 to US$323.00 per tonne. That would put the currency-adjusted basis levels at about US$13.70 to US$29.50 below the futures.
Looking at it the other way around, if Minneapolis futures values are converted to Canadian dollars, CWRS basis levels across Western Canada ranged from $10.20 to $21.60 below the futures.
Average CPSR (Canada Prairie Spring Red, 11.5 per cent protein) wheat prices lost $1.10-$4.80 per tonne. Bids ranged from $397.50 per tonne in southeastern Saskatchewan to $417.90 per tonne in northern Alberta.
Advances in average durum (Canada Western Amber Durum) prices were $4.60-$9.10 per tonne, with bids ranging from $492.70 per tonne in northeastern Saskatchewan to $502.40 per tonne in southern Alberta.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$9.1875 per bushel, losing 19.25 U.S. cents on the 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$8.605 per bushel, retreating 29.75 U.S. cents compared to a week ago.
The March Chicago Board of Trade soft wheat contract settled Thursday at US$7.5725 per bushel, shedding 25.75 U.S. cents from the previous week.
The Canadian dollar was down 1.13 U.S. cents on the week, largely due to declines in global crude oil prices. The loonie closed at 73.31 U.S. cents on Thursday.
— Glen Hallick reports for MarketsFarm from Winnipeg.
