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Prairie wheat bids down again with U.S. futures

Minneapolis, Chicago and Kansas City December wheat futures were all down on the week

Wheat bids in Western Canada continued to fall during the week ended Aug. 30, following the lead of the U.S. futures markets.

Average Canada Western Red Spring (CWRS, 13.5 per cent) wheat prices were down by $4 to $6 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 $232 per tonne in northwestern Saskatchewan to as high as $261 in southern Alberta.

Quoted basis levels varied from location to location and ranged from $18 to $47 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$178 to US$201 per tonne. That would put the currency-adjusted basis levels at about US$13 to $36 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 $17 to $46 below the futures.

Canada Prairie Spring Red (CPSR) wheat bids were weaker, dropping anywhere from $5 to $6 per tonne depending on the location. Prices ranged from $210 to $229 per tonne.

Average durum prices were lower, with bids ranging anywhere from $227 in northwestern Saskatchewan to $255 in southern Alberta, depending on the location.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based off of, was quoted Aug. 30 at US$5.8375 per bushel, down 6.5 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 at US$5.41 per bushel on Aug. 30, down 5.75 U.S. cents compared to the previous week.

The December Chicago Board of Trade soft wheat contract settled at US$5.35 per bushel on Aug. 30, down by 1.5 cents on the week.

The Canadian dollar settled Aug. 30 at 77.04 U.S. cents, up 0.33 of a cent on the week.

About the author

CNSC

Ashley Robinson writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

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