Prairie cash wheat: Gains in prices vary by type

MGEX, CBOT December wheats up on week

(Thinkstock photo)

MarketsFarm — Bids in Western Canada for the week ended Thursday were higher for Canada Western Amber Durum (CWAD), Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) wheats.

Gains in most of the U.S. wheat markets led to the increases, which were tempered somewhat by a stronger Canadian dollar.

Average CWRS (13.5 per cent protein) wheat prices rose $3.70-$6 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 $385.20 per tonne in southeastern Saskatchewan to $406.20 per tonne in northern Alberta.

Quoted basis levels varied from location to location and ranged from $50.25 to $71.25 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, CWRS bids ranged from US$304.40 to US$321 per tonne. That would put the currency-adjusted basis levels at about US$13.90-$30.55 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 range from $11 to $24.15 below the futures.

Average CPSR (11.5 per cent protein) wheat prices rose by between 80 cents and $4.65 per tonne. Bids ranged from $353.15 per tonne in southwestern Saskatchewan to $365.05 per tonne in northern Alberta.

Average durum prices increased $1.05-$23.05, with bids ranging from $600.75 per tonne in southern Alberta to $646.20 per tonne in northeastern Saskatchewan.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$9.115 per bushel, nudging up a half 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$7.20 per bushel, slipping back a half cent compared to the previous week.

The September Chicago Board of Trade soft wheat contract settled at US$7.1775 per bushel on Thursday, up 4.75 cents from the previous week.

The Canadian dollar was slightly higher, which tempered gains in wheat. The loonie bumped up 0.13 of a cent on the week at 79.03 U.S. cents.

— Glen Hallick reports for MarketsFarm from Winnipeg.

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