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Western wheat bids chop up and down

Average prices for CWRS wheat ran around $232 per tonne in western Manitoba

Hard red spring wheat bids in Western Canada saw volatile action during the week ended May 5, ultimately ending mixed in the face of competing influences.

Depending on the location, average Canada Western Red Spring (CWRS) wheat prices were down by as much as $1.75 to up $2.25 per tonne across the Prairie provinces, 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 western Manitoba to as high as $254 in northern Alberta.

Quoted basis levels varied from location to location, but generally ranged from about $29 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$169 to US$185 per tonne. That would put the currency-adjusted basis levels at about US$19-$35 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 $26 to $48 below the futures.

Canada Prairie Spring Red (CPSR) wheat bids were up by $10-$11 per tonne, with prices coming in at roughly $169-$185 per tonne.

Average durum prices were up as much as $9 per tonne, with bids in Saskatchewan coming in at about $255-$259 per tonne.

The July spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted May 5 at US$5.5425 per bushel, down by half a cent from the previous week.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The July K.C. wheat contract was quoted May 5 at US$4.50 per bushel, up by 7.75 U.S. cents compared to the previous week.

The July Chicago Board of Trade soft wheat contract settled May 5 at US$4.4225, which was up by 10 U.S. cents on the week.

The Canadian dollar settled May 5 at 72.92 U.S. cents, down by a third of a cent relative to its U.S. counterpart compared to the previous week.

About the author



Dave Sims writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting. Dave has a deep background in the radio industry and is a graduate of the University of Winnipeg. He lives in Winnipeg with his wife and two beautiful children. His hobbies include reading, podcasting and following the Atlanta Braves.


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