MarketsFarm — Canada Western Red Spring and Canada Western Amber Durum wheat prices declined while bids for Canada Prairie Spring Red rose during the week ended Jan. 26.
Wheat futures in the U.S. fell Monday, with the March contracts on the Chicago Board of Trade (CBOT) dropping 21 to 29 U.S. cents due to spillover from corn and soybeans as well as the prospects of precipitation in the U.S. southern Plains.
While a storm brought much needed snow and rain to the region, the amounts were insufficient to reverse drought conditions and improve wheat quality. A state crop report from Texas assessed its winter wheat crop at 11 per cent good to excellent and the futures recovered their losses, and then some, over the next three days.
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CWRS (13.5 per cent protein) prices were lower, declining by between 70 cents and $4.30 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices were between $408 a tonne in southeastern Saskatchewan and $431 in southern Alberta.
Quoted basis levels ranged from $70.70 to $93.70/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.
Accounting for exchange rates and adjusting Canadian prices to U.S. dollars, CWRS bids were from US$305.70 to US$322.90/tonne. Currency-adjusted basis levels ranged from US$14.50 to US$31.70 below the futures. If the futures were converted to Canadian dollars, basis levels would be $10.80-$23.70 below the futures.
Meanwhile, CPSR prices were higher, up $4.90-$8.10/tonne. The lowest average bid for CPSR wheat was $393.40/tonne in southeast Saskatchewan, while the highest average bid was $417.70 in southern Alberta.
Average durum (CWAD) prices fell $31.20-$41.30/tonne with bids ranging from $450.50 in northeastern Saskatchewan to $466 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$9.18 per bushel, 14 U.S. cents higher than the previous 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$8.6475/bu., up 32.75 U.S. cents.
The March CBOT wheat contract gained 18 U.S. cents from the previous week, closing Thursday at US$7.525/bu.
The Canadian dollar surged, advancing 0.68 of a U.S. cent to close at 74.91 U.S. cents on Thursday.
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
