MarketsFarm — Wheat on the Canadian Prairies was mixed for the week ended Thursday, with gains for Canada Western Red Spring and Canada Prairie Spring Red wheats, while Canada Western Amber Durum slipped back.
Kansas City winter wheat and Minneapolis spring futures were higher on the week to provide support for Canadian cash prices, but a small loss in Chicago wheat applied a little bit of pressure. However, a slightly weaker Canadian dollar helped to underpin cash prices. Harvest pressure was also being felt in the markets.
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Average CWRS (13.5 per cent protein) prices advanced $6.20-$13 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Those prices ranged from about $334.30 per tonne in northeastern Saskatchewan to $357.20 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from $59.50 to $82.50 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 United States dollars, CWRS bids ranged from US$244.50 to US$261.20 per tonne. That would put the currency-adjusted basis levels at about US$13.50-$30.30 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 ranged from $9.90 to $22.20 below the futures.
Average CPSR (11.5 per cent protein) wheat prices bumped up $1.80-$3.30 per tonne. Bids ranged from $307.20 per tonne in southeastern Saskatchewan to $326.90 per tonne in southern Alberta.
Average CWAD prices lost $1.50-$7 per tonne, with bids ranging from $503.70 per tonne in northeastern Saskatchewan to $512.70 per tonne in southwestern Saskatchewan.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$7.7475 per bushel, up eight U.S. cents on the 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$7.37 per bushel, advancing 9.75 U.S. cents compared to a week ago.
The December Chicago Board of Trade soft wheat contract settled Thursday at US$5.9975 per bushel, shedding 2.25 U.S. cents from the previous week.
The Canadian dollar gave up slightly more than three-quarters of a cent on the week at 73.13 U.S. cents, which lent support to Canadian prices.
— Glen Hallick reports for MarketsFarm from Winnipeg.
