MarketsFarm — Wheat bids in Western Canada were mostly higher during the week ended Thursday, as basis levels improved in most locations.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were mixed during the week, with a steady to softer tone in Manitoba while Saskatchewan and Alberta saw gains of $1-$3 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes).
Average CWRS prices ranged from about $207 per tonne in northeastern Saskatchewan to as high as $227 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from $28 to $47 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 everything into Canadian dollars, CWRS basis levels ranged from $6.50 to $17.50 below the futures. The Canadian dollar basis showed an improvement of $2-$3 per tonne over the week, as concerns over the quality of Canada’s crop continued to help prop up prices compared to the U.S. futures.
Bids for CPSR (Canada Prairie Spring Red) wheat were steady to up $4 per tonne. Prices ranged from $178 per tonne in southeastern Saskatchewan to $202 per tonne in southern Alberta.
Average durum prices were steady to up by as much as $11 per tonne across the Prairies, with bids ranging anywhere from $273.50 to $284 per tonne.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted Wednesday at US$4.885 per bushel , down by 6.75 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 Wednesday at US$4.2675 per bushel, up 5.75 cents compared to the previous week.
The December Chicago Board of Trade soft wheat contract settled at US$5.285 per bushel on Wednesday, up 19.5 cents on the week, as adverse conditions across the primary soft wheat growing regions of the U.S. Midwest propped up that market.
The Canadian dollar closed Thursday at 75.26 U.S. cents, which was steady with the previous week.
— Phil Franz-Warkentin reports for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.