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Prairie wheat bids fall along with U.S. futures

MGEX March spring wheat futures dropped 20.25 U.S. cents on the week

Hard red spring wheat bids in Western Canada fell for the week ended Dec. 8, as U.S. futures contracts fell as well.

Depending on the location, average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were down by about $3-$8 per tonne in some areas of Western Canada, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $230 per tonne in western Manitoba to as high as $252 in southern Alberta.

Quoted basis levels varied from location to location, but fell slightly to range from about $5 to $27 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$179 to US$196 per tonne, which was down on a U.S. dollar basis on the week. That would put the currency-adjusted basis levels at about US$29-$46 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 $48 to $60 below the futures.

Canada Prairie Spring Red (CPSR) wheat bids were anywhere from $7 to $8 lower. Prices across the Prairies ranged from $166 per tonne in southeastern Saskatchewan to $186 per tonne in southern Alberta.

Average durum prices fell $1-$6 per tonne across Western Canada, with bids ranging from about $268 to $275 per tonne.

The March spring wheat contract in Minneapolis, off of which most CWRS contracts are based, was quoted Dec. 8 at US$6.1125 per bushel, down 20.25 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 March K.C. wheat contract was quoted at US$4.18 per bushel on Dec. 8, down 19.5 U.S. cents compared to the previous week.

The March Chicago Board of Trade soft wheat contract settled at US$4.19 on Dec. 8, down 19.5 U.S. cents on the week.

The Canadian dollar settled Dec. 8 at 77.76 U.S. cents, down about three-quarters of a cent compared to the previous 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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