Hard red spring wheat bids in Western Canada rose for the week ending Oct. 27. A drop in the Canadian dollar and gains in Minneapolis futures propped up prices.
Depending on the location, average Canada Western Red Spring (CWRS, 13.5 per cent) wheat prices were up $11-$13 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 $256 in southern Alberta.
Quoted basis levels varied from location to location, but generally held steady to range from about $5 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$180 to US$199 per tonne, which was up on a U.S. dollar basis on the week. That would put the currency-adjusted basis levels at about US$28-$47 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 $36 to $60 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids ranged anywhere from $3 to $8 higher. Prices across the Prairies ranged from $168 per tonne in southeastern Saskatchewan to $186 per tonne in southern Alberta.
Average durum prices rose $2-$5, with bids in southern Alberta, Saskatchewan and western Manitoba coming in at about $261-$271 per tonne.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based off of, was quoted Oct. 27 at US$6.17, up 5.75 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 December K.C. wheat contract was quoted at US$4.2525 per bushel on Oct. 27, up 2.5 U.S. cents compared to the previous week.
The December Chicago Board of Trade soft wheat contract settled at US$4.2725 on Oct. 27, up 1.25 U.S. cents on the week.
The Canadian dollar settled Oct. 27 at US79.36 cents, down 1.68 U.S. cents on the week.