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Prairie wheat bids rise along with U.S. futures

Minneapolis March 2018 spring wheat climbed 8.75 U.S. cents on the week

Hard red spring wheat bids in Western Canada rose for the week ended Dec. 15, following the lead of U.S. futures contracts.

Depending on the location, average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices rose by about $3-$4 per tonne in some areas of Western Canada, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $234 per tonne in western Manitoba to as high as $256 in southern Alberta.

Quoted basis levels varied from location to location, but fell slightly to range from about $6 to $28 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.

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When accounting for currency exchange rates by adjusting Canadian prices to U.S. dollars, CWRS bids ranged from US$182 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$29-$46 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 $37 to $59 below the futures.

Canada Prairie Spring Red (CPSR) wheat bids were anywhere from $4 to $7 higher. Prices across the Prairies ranged from C$172 per tonne in southwestern Saskatchewan to $190 per tonne in Alberta.

Average durum prices were mostly unchanged across Western Canada, with bids ranging from about $268 to $275 per tonne.

The March spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted Dec. 15 at US$6.20 per bushel, up 8.75 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$4.175 per bushel on Dec. 15, down by half a U.S. cent compared to the previous week.

The March Chicago Board of Trade soft wheat contract settled at US$4.1825 on Dec. 15, down three-quarters of a U.S. cent on the week.

The Canadian dollar settled Dec. 15 at 77.92 U.S. cents, down roughly one-sixth of a cent compared to the previous 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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