Spring wheat bids in Western Canada were steady to lower during the week ended March 31, as a softer tone in U.S. futures and strength in the Canadian dollar weighed on prices in the countryside.
Depending on the location, average Canada Western Red Spring (CWRS) wheat prices were steady to down $2 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 $220 per tonne in western Manitoba to as high as $240 in northern Alberta.
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Quoted basis levels varied from location to location, but generally held steady to range from about $24 to $44 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$165 to US$180 per tonne. That would put the currency-adjusted basis levels at about US$16-$31 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 $21 to $41 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were down $3-$4 per tonne, with prices ranging from $151 to $166 per tonne.
Average durum prices were down by $8 to $15 per tonne, with bids in Saskatchewan coming in at about $252 to $255 per tonne.
The May spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted March 31 at US$5.3425 per bushel, down by 1.5 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 May K.C. wheat contract was quoted March 31 at US$4.205 per bushel, down 7.5 U.S. cents compared to the previous week.
The May Chicago Board of Trade soft wheat contract settled March 31 at US$4.265, down by about 2.25 U.S. cents on the week.
The Canadian dollar settled March 31 at 75.19 U.S. cents, up by roughly half a cent relative to its U.S. counterpart compared to the previous week.
