MarketsFarm -– Spring wheat bids in Western Canada were mixed during the week ended Nov. 1, as futures in the United States hit contract lows before bouncing higher and strength in the Canadian dollar cut into basis levels.
Average Canada Western Red Spring (13.5%) wheat prices were down by C$1.60 to C$2.40 per tonne across the Prairies, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from C$321.80 per tonne in northeastern Saskatchewan to as high as C$346.60 per tonne in southern Alberta.
Read Also
U.S. again halts cattle imports from Mexico over flesh-eating screwworms
The flesh-eating livestock pest New World screwworm has advanced closer to the U.S. border with Mexico, the U.S. Department of Agriculture said, prompting Washington to block imports of Mexican cattle just days after it allowed them to resume at a port of entry in Arizona.
Quoted basis levels varied from location to location and ranged from $53.80 to $78.50 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 everything into Canadian dollars (C$1=US$0.7363) CWRS basis levels ranged from C$9.50 to C$22.90 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were up by C$3.00 to C$7.60 per tonne, with prices ranging from C$274.20 to C$290.90 per tonne.
Average durum prices were down by C$2.30 to C$4.70 per tonne. Prices ranged from C$455.00 to C$465.20 per tonne.
Spring wheat futures in Minneapolis were up by 1.50 cents per bushel in the March contract to settle at US$7.2950 per bushel on Nov. 30.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The March Kansas City wheat contract was up by 18.75 cents on the week to close at US$6.4300 per bushel on Nov. 30.
The March Chicago Board of Trade soft wheat contract settled at US$5.9800 per bushel on Nov. 30, up by 13.50 cents on the week.
The Canadian dollar strengthened relative to its United States counterpart, rising by nearly two-thirds of a cent to settle at 73.63 U.S. cents on Nov. 30.
— Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.
