MarketsFarm — Spring wheat bids in Western Canada strengthened during the week ended Thursday, as sharp declines in the Canadian dollar boosted basis levels and more than made up for the bearish influence of softening U.S. futures.
Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were up by $4.10-$5.40 per tonne during the week ended Thursday, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes).
Average CWRS prices ranged from about $419.40 per tonne in southeastern Saskatchewan to as high as $444 per tonne in southern Alberta.
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Quoted basis levels varied from location to location and ranged from $64.40 to $89 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 $22.60 to $35.70 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were up by $1.80-$2.70 per tonne, with prices ranging from $403.60 to $422 per tonne.
Average durum prices were higher, gaining $14.40-$21.50 per tonne. Bids ranged from $426.80 to $434.70 per tonne.
Spring wheat futures in Minneapolis — off of which most CWRS bids in Canada are based — were down by 11.75 U.S. cents per bushel in the December contract to settle at US$9.66 per bushel on Thursday.
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$9.6675 per bushel, down 12.75 U.S. cents per bushel compared to the previous week.
The December Chicago Board of Trade soft wheat contract settled at US$8.9625 per bushel on Thursday, down 14.5 U.S. cents on the week.
The Canadian dollar closed Thursday at 72.96 U.S. cents, down 1-1/4 U.S. cents relative to its U.S. counterpart on the week.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
