Wheat bids in Western Canada were mostly down for the week ended Jan. 4 because of a stronger Canadian dollar.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were down $1-$2, except in eastern and western Manitoba which were up $3-$5, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $250 per tonne in southeastern Saskatchewan to as high as $271 in southern Alberta.
Quoted basis levels varied from location to location and ranged from $41 to $61 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$186 to US$202 per tonne. That would put the currency-adjusted basis levels at about US$8-$24 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 $10 to $31 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were mostly weaker, decreasing $1-$4 per tonne in most locations except for southwestern Saskatchewan, which was up by $7. Prices ranged from $223 in southeastern Saskatchewan to $245 per tonne in southern Alberta.
Average durum prices were down, with bids ranging anywhere from $220 in northwestern and southwestern Saskatchewan to $235 in western Manitoba.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Jan. 4 at US$5.7025 per bushel, up 19.75 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$5.06 per bushel on Jan. 4, up 10 U.S. cents compared to the previous week.
The March Chicago Board of Trade soft wheat contract settled Jan. 4 at US$5.17 per bushel, up 5.5 U.S. cents on the week.
The Canadian dollar was stronger at 74.57 U.S. cents, up 1.25 U.S. cents.