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Western Canadian wheat bids finish week mixed

Cash wheat values took support from U.S. futures against a stronger Canadian dollar

Hard red spring wheat bids in Western Canada held rangebound in most locations during the week ended Sept. 14, with small gains in some areas and small losses in others, as the futures held reasonably steady and the Canadian dollar strengthened.

Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were within $2 of unchanged in most areas, with only northwestern Saskatchewan seeing a large $15-per-tonne jump, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $236 per tonne in southeastern Saskatchewan to as high as $258 in southern Alberta.

Quoted basis levels varied from location to location and ranged from $7 to $29 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$181 to US$198 per tonne. That would put the currency-adjusted basis levels at about US$31-$48 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 $40 to $62 below the futures.

Canada Prairie Spring Red (CPSR) wheat bids were stronger, gaining anywhere from $1 to $2 per tonne depending on the location. Prices ranged from $205 to $222 per tonne.

Average durum prices were narrowly mixed, with losses of $13-$17 per tonne in southern Saskatchewan where prices came in at about $223-$231 per tonne.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted Sept. 14 at US$5.7225 per bushel, up by 2.25 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 December K.C. wheat contract was quoted at US$5.155 per bushel on Sept. 14, up by 0.5 U.S. cents compared to the previous week.

The December Chicago Board of Trade soft wheat contract settled at US$5.115 on Sept. 14, up 0.25 U.S. cents on the week.

The Canadian dollar settled Sept. 14 at 76.73 U.S. cents, up about three-quarters of a cent on the week.

About the author

Columnist

Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

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