Prairie cash wheat: Prices up on sharp rises in U.S. wheat

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

Support came from double-digit increases in Chicago, Minneapolis and Kansas City wheat futures. Meanwhile, the Canadian dollar was relatively steady.

Average CWRS (13.5 per cent protein) wheat prices were up $3-$8 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 $234 per tonne in southeastern Saskatchewan to as high as $252 per tonne in southern Alberta.

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Quoted basis levels varied from location to location and ranged from $29 to $47 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 Canadian prices to U.S. dollars, CWRS bids ranged from US$177 to US$190 per tonne. That would put the currency-adjusted basis levels at about US$15-$28 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 $21 below the futures.

Average CPSR (11.5 per cent protein) wheat prices were up $10-$11 per tonne. Bids ranged from $223 per tonne in southeastern Saskatchewan to $241 per tonne in northern Alberta.

Average durum prices were up $2-$3, with bids ranging from $281 per tonne in northwestern Saskatchewan to $273 per tonne in western Manitoba.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$5.5875 per bushel, up 16.25 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$5.58 per bushel, leaping 29.25 U.S. cents compared to the previous week.

The December Chicago Board of Trade soft wheat contract settled at US$6.1825 per bushel on Thursday, up 23 cents from the previous week.

The Canadian dollar traded stronger for most of the week. However, the loonie closed Thursday at 75.59 U.S. cents, slipping 0.05 of a cent.

— Glen Hallick reports for MarketsFarm from Winnipeg.

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