MarketsFarm — Wheat bids in Western Canada edged lower during the week ended Thursday, as seasonal harvest pressure and strength in the Canadian dollar weighed on values.
The Canadian dollar was up by roughly a third of a cent relative to its U.S. counterpart on the week. Minneapolis spring wheat futures held steady, but Kansas City and Chicago winter wheat contracts weakened slightly.
Average CWRS (Canada Western Red Spring, 13.5 per cent protein) wheat prices were down by between 50 cents and $1.50 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 $202 per tonne in southeastern Saskatchewan to as high as $221 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from $17.50 to $35.50 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 $24 to $42 below the futures.
Bids for CPSR (Canada Prairie Spring Red) wheat were down $1-$2 per tonne. Prices ranged from $170 per tonne in southeastern Saskatchewan to $187 per tonne in southern Alberta.
Average durum prices were down roughly $2 per tonne in most locations, with bids ranging anywhere from $239 to $250 per tonne.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted Thursday at US$5.02 per bushel, up half a cent 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$3.9375 per bushel, down 7.75 cents compared to the previous week.
The December Chicago Board of Trade soft wheat contract settled Thursday at US$4.745 per bushel, down 6.5 cents on the week.
The Canadian dollar closed Thursday at 75.6 U.S. cents, up roughly a third of a cent compared to the previous week.
— Phil Franz-Warkentin writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.Tagged Canadian dollar, cash wheat, CPSR, CWRS, durum, harvest, Wheat, wheat bids, wheat futures