Canadian spring wheat bids dip with Minneapolis futures
| 2 min read
Photo: Thinkstock
MarketsFarm – Losses in Minneapolis wheat futures weighed on Canadian spring wheat cash bids during the first week of November, although a softer tone in the Canadian dollar did lend some support. Durum bids across the Prairies were up on the week.
Average Canada Western Red Spring (13.5 per cent) wheat prices were down by C$2.20 to C$5.10 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 C$427.00 per tonne in southeastern Saskatchewan to as high as C$447.60 per tonne in northern Alberta.
Quoted basis levels varied from location to location and ranged from $53.30 to $73.90 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 everything into Canadian dollars (C$1=US$0.8033) CWRS basis levels ranged from C$11.40 to C$24.60 below the futures.
Canada Prairie Red Spring (CPSR) wheat bids were down by C$1.50 to C$3.60 on the week, ranging from C$379.80 to C$397.00 per tonne.
Average durum prices were up by C$8.50 to C$28.20, with bids ranging anywhere from C$732.20 to C$754.80 per tonne.
The Canadian dollar closed at 80.33 U.S. cents on Nov. 4, which was down by two-thirds of a cent relative to its U.S. counterpart.
The December spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$10.1700 per bushel on Nov. 4, down by 20.50 cents from the previous week.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The December Kansas City wheat contract was quoted at US$7.8600 per bushel on Nov. 4, down four cents compared to the previous week.
The December Chicago Board of Trade soft wheat contract settled at US$7.7375 per bushel on Nov. 4, up by 1.25 cents on the week.
