MarketsFarm — Wheat bids in Western Canada were generally up for the week ended Aug. 8, with gains in Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) wheats in all locations. Durum (CWAD) was either side of steady, depending on location.

The Canadian dollar was down by almost a quarter of a cent and provided support, as did increases in Kansas City, Chicago and Minneapolis wheat futures values.

Average CWRS (13.5 per cent protein) wheat prices were up by $1-$3 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 $209 per tonne in southeastern Saskatchewan to as high as $221 per tonne in the Peace region.

Quoted basis levels varied from location to location and ranged from $18 to $35 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$158 to US$171 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 the Minneapolis futures are converted to Canadian dollars, CWRS basis levels across Western Canada range from $26 to $44 below the futures.

Wheat bids for CPSR were up $4-$7 per tonne. Prices ranged from $176 per tonne in southern Saskatchewan to $194 per tonne in southern Alberta.

Average durum prices were either side of steady, with bids ranging anywhere from $233 per tonne in western Saskatchewan to $242 per tonne in southern Alberta.

The September spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted at US$5.205 per bushel on Aug. 8, up two 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 September K.C. wheat contract was quoted at US$4.185 per bushel on Aug. 8, up 2.75 cents compared to the previous week.

The September Chicago Board of Trade soft wheat contract settled at US$4.985 per bushel on Aug. 8, up 22.75 cents on the week.

The Canadian dollar closed at 75.43 U.S. cents on Aug. 8, a decrease of 0.23 of a cent from the previous week.

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