Wheat bids in Western Canada were mixed for the week ended Jan. 19, following the lead of U.S. markets where wheat futures fell in Minneapolis and rose in Kansas and Chicago.
Depending on the location, average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were mixed in Western Canada with some falling $1 and others increasing $1, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $226 per tonne in western Manitoba to as high as $249 in parts of Alberta.
Quoted basis levels varied from location to location, but fell slightly to range from about $2 to $25 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$181 to US$200 per tonne, down slightly on a U.S. dollar basis on the week. That would put the currency adjusted basis levels at about US$24-$43 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 $30 to $53 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were down by $1. Prices across the Prairies ranged from $174 per tonne in southwestern Saskatchewan to $194 per tonne in parts of Alberta.
Average durum prices were little changed, with a few rising slightly across Western Canada, and bids ranging from about $268 to $274 per tonne.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted Jan. 19 at US$6.085 per bushel, down 4.25 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 March K.C. wheat contract was quoted at US$4.275 per bushel on Jan. 19, up 1.25 U.S. cents compared to the previous week.
The March Chicago Board of Trade soft wheat contract settled at US$4.2275 on Jan. 19, up 2.25 U.S. cents on the week.
The Canadian dollar settled Jan. 19 at 80.26 U.S. cents, up by over a quarter of a cent compared to the previous week.