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Wheat bids fall along with U.S. futures

While the futures fell, many locations saw a rising basis

Hard red spring wheat bids in Western Canada fell slightly for the week ending Nov. 17, following decreases in the United States markets.

Depending on the location, average Canada Western Red Spring (13.5 per cent protein CWRS) wheat prices were down $3 to $5 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 $242 per tonne in western Manitoba, to as high as $264 in northern Alberta.

Quoted basis levels varied from location to location, but generally improved to range from about $9 to $31 per tonne above the futures when using the grain company methodology of quoting the basis as the difference between the U.S. dollar-denominated futures and the Canadian dollar cash bids.

When accounting for currency exchange rates by adjusting Canadian prices to U.S. dollars (C$1=US$0.7823) CWRS bids ranged from US$189 to US$207 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$26 to US$44 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 $33 to $56 below the futures.

Canada Prairie Red Spring (CPRS) wheat bids were anywhere from $4 higher to $7 higher. Prices across the Prairies ranged from $172 per tonne in southeastern Saskatchewan to $191 per tonne in northern Alberta.

Average durum prices held within a couple of dollars unchanged, with bids in Saskatchewan and Manitoba ranging from about $267 to $281 per tonne.

The December spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$6.35 per bushel on Nov. 17, which was down by 13 U.S. cents from the previous week.

The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The December Kansas City wheat contract was quoted at US$4.20 per bushel on Nov. 17, down by 9 U.S. cents compared to the previous week.

The December Chicago Board of Trade soft wheat contract settled at US$4.2725 on Nov. 17, which was down by 1.75 U.S. cents on the week.

The Canadian dollar settled at 78.23 U.S. cents on Nov. 17, which was down by roughly half 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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