Wheat bids in Western Canada continued to soften during the week ended Aug. 11, feeling the pull of downward action in U.S. futures.
Depending on the location, average Canada Western Red Spring (CWRS) wheat prices were down by $14-$16 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 $254 per tonne in western Manitoba to as high as $268 in eastern Manitoba.
Quoted basis levels varied from location to location, but generally improved by a couple of dollars to range from about $7-$20 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$200 to US$211 per tonne. That would put the currency-adjusted basis levels at about US$37-$48 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 $47 to $61 below the futures. Canada Prairie Spring Red (CPSR) wheat bids were mostly down by $2-$5 per tonne, with prices ranging from $165 to $173 per tonne.
Average durum prices were up by $11-$25 per tonne, with bids in Saskatchewan coming in at about $310-$330 per tonne.
The September spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted Aug. 11 at US$6.74 per bushel, down by 42.25 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 September K.C. wheat contract was quoted Aug. 11 at US$4.4125 per bushel, down by 18.25 U.S. cents compared to the previous week.
The September Chicago Board of Trade soft wheat contract settled at US$4.3925 on Aug. 11, down 15.5 U.S. cents on the week.
The Canadian dollar settled Aug. 11 at 78.83 U.S. cents, down roughly a third of a cent on the week.