Wheat bids in Western Canada followed the lead of U.S. futures markets for the week ended Feb. 2, with some dropping while others increased.
Depending on the location, average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices in Western Canada fell $4-$7, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $221 per tonne in western Manitoba to as high as $241 in parts of Alberta.
Quoted basis levels varied from location to location, but fell slightly to range from $1 below the futures to $19 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$179 to US$195 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$27-$43 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 $34 to $54 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were up $4-$7. Prices across the Prairies ranged from $185 per tonne in southwestern Saskatchewan to $205 per tonne in southern Alberta.
Average durum prices fell by $1 in most of Western Canada; bids ranged from about $232 to $272 per tonne. Most prices were around the $272 mark, while northwestern Saskatchewan was the outlier at $232.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted Feb. 2 at US$6.0375 per bushel, down 10.75 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$4.6325 per bushel on Feb. 2, up 20.25 U.S. cents compared to the previous week.
The March Chicago Board of Trade soft wheat contract settled at US$4.4675 on Feb. 2, up 5.75 U.S. cents on the week.
The Canadian dollar settled Feb. 2 at 80.78 U.S. cents, down by 0.38 of a cent compared to the previous week.