Hard red spring wheat bids in Western Canada moved lower during the week ended March 9, as losses in U.S. futures and a firmer tone in the Canadian dollar weighed on values.
Depending on the location, average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were down by $1-$2 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 $236 per tonne in southeastern Saskatchewan to as high as $251 in northern Alberta.
Quoted basis levels varied from location to location and ranged from $8 to $23 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$184 to US$195 per tonne, which was steady on a U.S. dollar basis on the week. That would put the currency-adjusted basis levels at about US$33-$44 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 $42 to $56 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were down by $5-$6 per tonne, with prices ranging from $206 to $224 per tonne.
Average durum prices were steady to slightly lower, with bids in Saskatchewan coming in at about $254-$262 per tonne.
The May spring wheat contract in Minneapolis, off of which most CWRS contracts are based, was quoted March 9 at US$6.175 per bushel, down by 2.75 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$5.205 per bushel on March 9, down 13.25 U.S. cents compared to the previous week.
The March Chicago Board of Trade soft wheat contract settled at US$4.8925 on March 9, down 10.75 U.S. cents on the week.
The Canadian dollar settled March 9 at 77.88 U.S. cents, up roughly a quarter of a cent on the week.