MarketsFarm — Bids for Canada Western Red Spring (CWRS) wheat were lower in Manitoba, but higher in the rest of the Prairies, while those for Canada Prairie Spring Red (CPSR) and Canada Western Amber Durum (CWAD) wheat also went down during the week ended Thursday.
U.S. wheat futures declined for the week, but were supported by bullish activity after the U.S. Department of Agriculture released its monthly world agricultural supply/demand estimates (WASDE) on Thursday.
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As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
World wheat carryout for 2023-24 was projected by USDA at 258.1 million tonnes, near the lower end of trade estimates. USDA left its 2023-24 estimate for Canadian wheat production unchanged from September at 31 million tonnes, but increased projected carryout by 80,000 tonnes at 3.56 million.
CWRS prices were down $4.60 to up $7 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices were between $323.30/tonne in southeastern Saskatchewan and $349.90 in southern Alberta.
Quoted basis levels ranged between $59.70-$86.30/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.
Accounting for exchange rates and adjusting Canadian prices to U.S. dollars, CWRS bids were from US$236.70 to US$265.20/tonne. Currency-adjusted basis levels ranged from US$7.50 to US$26.90 below the futures. If the futures were converted to Canadian dollars, basis levels would be $5.50-$19.70 below the futures.
Meanwhile, CPSR prices were down $4.30-$6/tonne. The lowest average bid for CPSR was $284.20/tonne in southeastern Saskatchewan, while the highest average bid was $311.50 in southern Alberta.
The average prices for Canada Western Amber Durum (CWAD) were $7.70-$12.70 per tonne lower with bids between $487.30 in northeastern Saskatchewan and $497.60 in western Manitoba.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts are based, was quoted at US$7.235 per bushel on Thursday, eight U.S. cents higher than 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 at US$6.75/bu., down 15.5 U.S. cents.
The December Chicago Board of Trade (CBOT) wheat contract lost 6.75 U.S. cents from the previous week, closing Thursday at US$5.715/bu.
The Canadian dollar was slightly stronger, gaining 0.4 U.S. cent to close at 73.22 U.S. cents U.S. on Thursday.
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
