MarketsFarm — Cash wheat bids in Western Canada continued to build this week, on momentum from the previous week.
Canada Western Red Spring (CWRS) and Canada Prairie Red Spring (CPRS) wheats saw price increases for the week ended Thursday. Meanwhile, prices for Canada Western Amber Durum (CWAD) held steady.
Support came from increases in Chicago, Minneapolis and Kansas City wheat futures. However, the Canadian dollar gained more than a 10th of a cent, which stymied further price increases.
Average CWRS (13.5 per cent protein) wheat prices were steady to up $8-$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 $214 per tonne in northeastern Saskatchewan to as high as $231 per tonne in northern Alberta.
Quoted basis levels varied from location to location and ranged from $25.50 to $42 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$162 to US$175 per tonne. That would put the currency-adjusted basis levels at about US$14-$26 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 $11 to $20.50 below the futures.
Average CPSR (11.5 per cent protein) wheat prices were up $7-$8 per tonne. Bids ranged from $186 per tonne in southeastern Saskatchewan to $203 per tonne in southern Alberta.
Average durum prices were steady, with bids ranging from $270 per tonne in western Saskatchewan to $283 per tonne in western Manitoba.
The September spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$5.1325 per bushel, up 16.25 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 September K.C. wheat contract was quoted Thursday at US$4.415 per bushel, up 16.5 U.S. cents on the week.
The September Chicago Board of Trade soft wheat contract settled Thursday at US$5.195 per bushel, up 22.75 U.S. cents from the previous week.
The Canadian dollar closed Thursday at 75.79 U.S. cents, up 0.13 U.S. cent on the week.
— Glen Hallick reports for MarketsFarm from Winnipeg.