MarketsFarm — Bids were steady to higher this week in Western Canada for Canada Western Red Spring (CWRS), Canada Prairie Spring Red (CPRS) and Canada Western Amber Durum (CWAD) wheats.
Gains in most U.S. wheat markets provided support as strength in the Canadian dollar kept a lid on further gains.
Average CWRS (13.5 per cent protein) wheat prices were steady to $3 per tonne higher, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $231 per tonne in southeastern Saskatchewan to as high as $249 per tonne in northern and southern Alberta.
Quoted basis levels varied from location to location and ranged from $30 to $48 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$176 to US$190 per tonne. That would put the currency-adjusted basis levels at about US$10-$24 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 $8 to $19 below the futures.
Average CPSR (11.5 per cent protein) wheat prices were up $1-$2 per tonne. Bids ranged from $216 per tonne in southeastern Saskatchewan to $232 per tonne in northern and southern Alberta.
Average durum prices were steady with bids ranging from $290 per tonne in northwestern Saskatchewan to $299 per tonne in western Manitoba.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$5.4625 per bushel, down 2.75 U.S. cents from the previous week.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The December K.C. wheat contract was quoted Thursday at US$5.4875 per bushel, rising 4.75 U.S. cents compared to the previous week.
The December Chicago Board of Trade soft wheat contract settled at US$5.9175 per bushel on Thursday, up 3.5 U.S. cents from the previous week.
The Canadian dollar continued to remain above 76 U.S. cents this week and pushed higher by nearly a quarter of a cent to 76.44 U.S. cents on Thursday.
— Glen Hallick reports for MarketsFarm from Winnipeg.