Hard red spring wheat bids in Western Canada rose during the week which ended Oct. 6, as weakness in the Canadian dollar drove up prices.
Depending on the location, average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were up as much as $7 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 $226 per tonne in western Manitoba to as high as $249 in southern Alberta.
Quoted basis levels varied from location to location, but generally held steady to range from about $3 below the futures to $20 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$180 to US$198 per tonne, which was up on a U.S. dollar basis on the week. That would put the currency-adjusted basis levels at about US$31-$49 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 $39 to $61 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were down by about $2 per tonne, with prices ranging from $163 to $181 per tonne.
Average durum prices dipped slightly, with bids in southern Alberta and Saskatchewan coming in at about $261-$267 per tonne.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted Oct. 6 at US$6.2375 per bushel, unchanged 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$4.36 per bushel on Oct. 6, down 6.75 U.S. cents compared to the previous week.
The December Chicago Board of Trade soft wheat contract settled at US$4.435 on Oct. 6, down 4.75 U.S. cents on the week.
The Canadian dollar settled Oct. 6 at 79.69 U.S. cents, down roughly half a cent on the week.