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Prairie spring wheat bids see slight change

A slow harvest isn’t making a big impact on the markets

Wheat bids in Western Canada were mixed for the week ended Oct. 19 with only small changes, as the stalled harvest across the Prairies was able to start up again following weeks of cold and wet weather.

Average Canada Western Red Spring (13.5 per cent CWRS) wheat prices were up slightly, rising by less than a dollar to $2 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $250 per tonne in southeastern Saskatchewan, to as high as $273 in southern Alberta.

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Quoted basis levels varied from location to location and ranged from $30 to $53 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$0.7631) CWRS bids ranged from US$191 to US$208 per tonne. That would put the currency adjusted basis levels at about US$12 to US$29 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 $15 to $38 below the futures.

Canada Prairie Red Spring (CPRS) wheat bids were slightly weaker, falling by less than a dollar per tonne depending on the location. Prices ranged from $215 to $232 per tonne in Alberta and Saskatchewan.

Average durum prices were narrowly higher, with bids ranging anywhere from $208 in northwestern Saskatchewan to $222 in western Manitoba, depending on the location.

The December spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.8875 per bushel on Oct. 19, down by 7.25 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$5.1624 per bushel on Oct. 19, down by eight U.S. cents compared to the previous week.

The December Chicago Board of Trade soft wheat contract settled at US$5.1475 per bushel on Oct. 19, down by 2.50 cents on the week.

The Canadian dollar settled at 76.31 U.S. cents on Oct. 19, which was down by just under a half of a cent on the week.

About the author

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Ashley Robinson - MarketsFarm

Ashley Robinson writes for MarketsFarm specializing in grain and commodity market reporting.

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