MarketsFarm — A sharp drop in Minneapolis spring wheat futures weighed on cash wheat bids across the Prairies during the week ended Thursday, but declines in the Canadian dollar provided some support and helped temper losses somewhat.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were down by $7.60-$11.60 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 $439.80 per tonne in western Manitoba to as high as $459 per tonne in northern Alberta.
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Quoted basis levels varied from location to location and ranged from $66.20 to $85.40 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 $7.30 to $19.40 below the futures. That marked an improvement of about $1-$2 over the week, as the Canadian dollar lost nearly a cent relative to its U.S. counterpart.
The Canadian dollar closed at 79.4 U.S. cents on Nov. 18, down by 90 points relative to its U.S. counterpart.
Canada Prairie Red Spring (CPSR) wheat bids were mixed, losing as much as $11.30 per bushel in southwestern Saskatchewan while gaining 60 cents in southern Alberta. Prices ranged from $398.70 to $415.20 per tonne.
Average durum (CWAD) prices were steady, gaining 10-20 cents on the week. Bids ranged from $732.70 to $755.90 per tonne.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$10.1675 per bushel , down by 38.75 U.S. 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 Thursday at US$8.2725 per bushel, down two U.S. cents compared to the previous week.
The December Chicago Board of Trade soft wheat contract settled Thursday at US$8.20 per bushel, up 6.5 U.S. cents on the week.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
