Wheat bids in Western Canada were mixed across the board for the week ended Jan. 26. Some saw increases, others decreases, and some were unchanged from the previous week.
Depending on the location, average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were mixed in Western Canada, with some falling $1 and others unchanged, 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 $248 in northern Alberta.
Quoted basis levels varied from location to location, but fell slightly to range being from equal to the futures to $22 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$183 to US$201 per tonne, up slightly on a U.S. dollar basis on the week. That would put the currency-adjusted basis levels at about US$25-$43 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 $30 to $52 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were up by $4-$5. Prices across the Prairies ranged from $178 per tonne in southwestern Saskatchewan to $199 per tonne in parts of Alberta.
Average durum prices were mixed, with some unchanged and others rising $1 in most of Western Canada; bids ranged from about $270 to $273 per tonne. Northwestern Saskatchewan was an outlier, with the average price having dropped $34, to $234 per tonne, over the week.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted at US$6.145 per bushel on Jan. 26, up six U.S. cents from the previous week. During the week the contract had dipped to US$6.0425 per bushel on Jan. 23.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The March Kansas City wheat contract was quoted Jan. 26 at US$4.43 per bushel, up 15.5 U.S. cents compared to the previous week.
The March Chicago Board of Trade soft wheat contract settled at US$4.41 on Jan. 26, up 18.25 U.S. cents on the week.
The Canadian dollar settled Jan. 26 at 81.16 U.S. cents, up almost a full cent compared to the previous week.