Wheat bids in Western Canada were mixed for the week ended Feb. 23; some fell following the lead of U.S. futures, while others rose slightly, taking support from a lower Canadian dollar.
Depending on the location, average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were mixed in Western Canada, with some unchanged and others rising by $1-$2, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $238 per tonne in southeastern Saskatchewan to as high as $252 in northern Alberta.
Quoted basis levels varied from location to location, but rose to range from $17 to $31 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$188 to US$199 per tonne, which was down on a U.S. dollar basis on the week. That would put the currency-adjusted basis levels at about US$22-$33 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 $28 to $42 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were mixed with some rising $1 while others fell $1. Prices across the Prairies ranged from $196 per tonne in southwestern Saskatchewan to $214 per tonne in southern Alberta.
Average durum prices fell $3-$5 in most of Western Canada; bids ranged from about $255 to $263 per tonne.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based off of, was quoted Feb. 23 at US$6.0075 per bushel, down almost eight 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$4.79 per bushel on Feb. 23, down nine U.S. cents compared to the previous week.
The March Chicago Board of Trade soft wheat contract settled at US$4.5225 on Feb. 23, down almost 10 U.S. cents on the week.
The Canadian dollar settled Feb. 23 at 78.94 U.S. cents, down just over a cent over the course of the week.