Hard red spring wheat bids in Western Canada softened yet again during the week ended Sept. 15, as downward action in U.S. futures dragged on values.
Depending on the location, average Canada Western Red Spring (CWRS) wheat prices were down $5-$6 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 $221 per tonne in western Manitoba to as high as $240 in Alberta.
Quoted basis levels varied from location to location, with some improving by $4-$7 while others fell anywhere from $2 to $10 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$181 to US$197 per tonne, unchanged on a U.S. dollar basis on the week. That would put the currency-adjusted basis levels at about US$35-$51 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 $43 to $62 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids eked out tiny gains, with prices ranging from $155 to $171 per tonne.
Average durum prices were generally down $1-$3 per tonne, with bids in Saskatchewan coming in at about $263-$267 per tonne.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted Sept. 15 at US$6.215 per bushel, down 25.25 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 December K.C. wheat contract was quoted at US$4.46 per bushel on Sept. 15, up 4.5 U.S. cents compared to the previous week.
The December Chicago Board of Trade soft wheat contract settled Sept. 15 at US$4.49, up 11.25 U.S. cents on the week.
The Canadian dollar settled Sept. 15 at 82.09 U.S. cents, down by roughly a third of a cent on the week.