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Prairie wheat bids follow U.S. futures higher

Chicago and K.C. September wheat futures rose on the week while Minneapolis wheat slipped

Hard red spring wheat bids in Western Canada climbed higher during the week ended Aug. 17, taking direction from most of the U.S. futures markets.

Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were up $6-$9 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 $247 per tonne in northwestern Saskatchewan to as high as $280 in southern Alberta.

Quoted basis levels varied from location to location and ranged from $17 to $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 U.S. dollars, CWRS bids ranged from US$189 to US$213 per tonne. That would put the currency adjusted basis levels at about US$16-$41 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 $21 to $54 below the futures.

Canada Prairie Spring Red (CPSR) wheat bids were stronger, gaining anywhere from $8 to $10 per tonne depending on the location. Prices ranged from $227 to $246 per tonne.

Average durum prices were higher, with bids ranging anywhere from $230 in northwestern Saskatchewan to $260 in southern Alberta, depending on the location.

The September spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Aug. 17 at US$6.085 per bushel on Aug. 17, down 0.0025 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 at US$5.69 per bushel on Aug. 17, up 5.25 U.S. cents compared to the previous week.

The September Chicago Board of Trade soft wheat contract settled at US$5.605 per bushel on Aug. 17, up 13.75 U.S. cents on the week.

The Canadian dollar settled Aug. 17 at 76.45 U.S. cents, up 0.19 of a cent on the week.

About the author

CNSC

Ashley Robinson writes for MarketsFarm specializing in grain and commodity market reporting.

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