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Red spring wheat loses ground on Prairies

Minneapolis, Kansas City and Chicago March wheat futures were down on the week

Average (CWRS) prices ranged from about $248 per tonne in western Manitoba and southeastern Saskatchewan to as high as $269 in southern Alberta.

Wheat bids in Western Canada were largely down for the week ended Feb. 8 as losses in U.S. futures countered the supportive influence of a weaker Canadian dollar.

Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were down by about $2, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $248 per tonne in western Manitoba and southeastern Saskatchewan to as high as $269 in southern Alberta.

Quoted basis levels varied from location to location and ranged from $39 to $60 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$187 to US$203 per tonne. That would put the currency-adjusted basis levels at about US$6-$22 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 $8 to $30 below the futures.

Canada Prairie Spring Red (CPSR) wheat bids were weaker, decreasing by around $4 per tonne. Prices ranged from $219 per tonne in southeastern Saskatchewan to $243 per tonne in southern Alberta.

Average durum prices were up, with bids ranging anywhere from $230 per tonne in northwestern and southwestern Saskatchewan to $247 per tonne in western Manitoba.

The March spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted Feb. 8 at US$5.685 per bushel, down seven 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 Feb. 8 at US$4.9425 per bushel, down 14.5 U.S. cents compared to the previous week.

The March Chicago Board of Trade soft wheat contract settled at US$5.1725 per bushel on Feb. 8, down by seven U.S. cents on the week.

The Canadian dollar slipped to 75.36 U.S. cents, a decrease of about one cent on the week.

About the author

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Glen Hallick - MarketsFarm

Glen Hallick writes for MarketsFarm specializing in grain and commodity market reporting. He previously reported for Postmedia newspapers in southern Manitoba and the province’s Interlake region.

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