Cash wheat: CWRS follows Minneapolis futures higher

MarketsFarm — Cash wheat bids in Western Canada were mostly higher for the week ended Thursday.

Gains were seen in Canada Western Red Spring (CWRS) and Canada Western Amber Durum (CWAD) wheats in all locations, while Canada Prairie Spring Red (CPSR) saw gains in most regions.

The Canadian dollar was firm with almost no movement.

Average CWRS (13.5 per cent protein) wheat prices were up by $11-$15 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $231 per tonne in southeastern Saskatchewan to as high as $248 per tonne in southern Alberta.

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Quoted basis levels varied from location to location and ranged from $24 to $42 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$174 to US$187 per tonne. That would put the currency-adjusted basis levels at about US$20-$33 below the futures.

Looking at it the other way around, if Minneapolis futures are converted to Canadian dollars, CWRS basis levels across Western Canada range from $26 to $41 below the futures.

Bids for CPSR were up $1-$2 per tonne, except for southeastern Saskatchewan, where bids were steady, and in the Peace River region, where prices dropped $3. Prices ranged from $184 per tonne in southeastern Saskatchewan to $202 per tonne in southern Alberta.

Average durum prices were up $8-$10, with bids ranging from $264 per tonne in southern Alberta to $271 per tonne in western Manitoba.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted Thursday at US$5.4875 per bushel, up 28.5 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 December K.C. wheat contract was quoted Thursday at US$4.0825 per bushel, down 1.25 U.S. cents compared to the previous week.

The December Chicago Board of Trade soft wheat contract settled at US$4.8425 per bushel on Thursday, down 3.75 cents on the week.

The Canadian dollar closed at 75.41 U.S. cents on Sept. 26, virtually unchanged from the previous week.

— Glen Hallick reports for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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