Glacier FarmMedia — Western Canadian cash prices for spring wheat and durum were mostly higher during the week ended Jan. 27, supported by gains in the United States wheat complex.
Concerns about a severe winter storm across much of the U.S. that started on Jan. 24 spurred the increases in the wheat futures. As did below normal temperatures in Europe. However, it’s believed the U.S. winter wheat has sufficient snow cover and Europe is to turn warmer.
A stronger Canadian dollar put a lid on the upswing in the Prairie cash prices, as the loonie rose by 1.11 cents at 73.42 U.S. cents.
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CWRS
Average CWRS (13.5%) prices gained 30 cents to C$3.50 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Those prices ranged from about C$247.00 per tonne in southeastern Saskatchewan to C$278.00 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from C$37.00 to C$67.80 per tonne above the futures when using the grain company methodology of quoting the basis as the difference between the U.S. dollar-denominated futures and the Canadian dollar cash bids.
When accounting for currency exchange rates by adjusting Canadian prices to U.S. dollars (C$1=US$0.7342), CWRS bids ranged from US$181.30 to US$204.00 per tonne. That would put the currency-adjusted basis levels at about US$6.10 to US$28.80 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 ranged from C$4.50 to C$21.10 below the futures.
CPSR & CWAD
Average CPRS (11.5%) wheat prices were down C$11.10 to up C$3.30 per tonne. Bids ranged from C$225.00 per tonne in northwestern Saskatchewan to C$249.10 per tonne in southern Alberta.
Average CWAD prices dipped 10 cents to adding C$3.70 per tonne. Bids ranged from C$273.80 per tonne in southwestern Saskatchewan to C$287.3 per tonne in western Manitoba.
U.S. wheat complex
The March spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.7175 per bushel on Jan.27, climbing 9.75 cents.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The March Kansas City wheat contract was quoted at US$5.3275 per bushel on Jan. 27, also up 9.75 cents.
The December Chicago Board of Trade soft wheat contract settled at US$5.2325 per bushel Jan. 27, increasing 13 cents.
