MarketsFarm –– Spring wheat bids in Western Canada moved higher during the week ended Thursday, as gains in U.S. futures provided support.
Average Canada Western Red Spring (CWRS, 13.5 per cent) wheat prices were up by $8.80-$10.10 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 $333.50 per tonne in northeastern Saskatchewan to as high as $358.80 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from $63.60 to $88.90 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.
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When accounting for currency exchange rates by adjusting everything into Canadian dollars, CWRS basis levels ranged from $6.90 to $20.20 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were up by $2-$8 per tonne, with prices ranging from $284.60 to $305.10 per tonne.
Average durum prices were up by between 10 cents and $1.60 per tonne. Prices ranged from $463.60 to $471.60 per tonne.
Spring wheat futures in Minneapolis were up by 23.75 U.S. cents per bushel in the December contract to settle Thursday at US$7.345 per bushel.
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 up by 5.75 U.S. cents on the week to close at US$6.4725 per bushel on Thursday.
The December Chicago Board of Trade soft wheat contract settled at US$5.8075 per bushel on Thursday, up by 15.25 U.S. cents on the week.
The Canadian dollar strengthened relative to its U.S. counterpart early in the week before running into resistance to retreat and end relatively unchanged, finishing at 72.56 U.S. cents on Thursday, a move of only 0.02 U.S. cent.
— Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.
