Prairie cash wheat: Bids mostly lower

MarketsFarm — Wheat bids in Western Canada were mixed during the week ended Thursday, with losses observed in Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) wheats.

Canada Western Amber Durum (CWAD) wheat was steady to higher.

Average CWRS (13.5 per cent protein) wheat prices were down $2-$4 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 $229 per tonne in southeastern Saskatchewan to as high as $247 per tonne in northern Alberta.

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Quoted basis levels varied from location to location and ranged from $27 to $46 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$175 to US$187 per tonne. That would put the currency-adjusted basis levels at about US$13-$27 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 $10 to $21 below the futures.

Bids for CPSR wheat ranged from $214 per tonne in southeastern Saskatchewan to $231 per tonne in southern Alberta.

Average durum prices were on either side of unchanged, with bids ranging from $290 per tonne in northwestern Saskatchewan to $299 per tonne in western Manitoba.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$5.49 per bushel , down 12 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$5.44 per bushel, losing 19 cents compared to the previous week.

The December Chicago Board of Trade soft wheat contract settled at US$5.8825 per bushel on Thursday, down by 21 cents on the week.

The Canadian dollar closed Thursday at 76.2 U.S. cents, losing about four 10ths of a cent on the week.

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