Glacier Farmmedia – Spring wheat bids in Western Canada moved lower during the first week of 2024, as losses in the United States futures more than countered the supportive influence of a weaker Canadian dollar.
Average Canada Western Red Spring (13.5%) wheat prices were down by C$2.90 to C$3.50 per tonne across the Prairies, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from C$311.10 per tonne in northeastern Saskatchewan to as high as C$334.10 per tonne in southern Alberta.
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Quoted basis levels varied from location to location and ranged from $49.70 to $72.70 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 everything into Canadian dollars (C$1=US$0.7488) CWRS basis levels ranged from C$8.40 to C$21.30 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids were also lower, down by C$4.80 to C$5.80 per tonne, with prices ranging from C$265.90 to C$289.50 per tonne.
Average durum prices were mixed, although the bias was higher in most locations with prices down 20 cents to up C$2.30 per tonne. Durum prices ranged from C$441.60 to C$448.20 per tonne.
Spring wheat futures in Minneapolis were down by 14.25 cents per bushel in the March contract to settle at US$7.1125 per bushel on Jan. 4.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The March Kansas City wheat contract was down by 18.00 cents on the week to close at US$6.2575 per bushel on Jan. 4.
The March Chicago Board of Trade soft wheat contract settled at US$6.1350 per bushel on Jan. 4, down by 18.00 cents on the week.
The Canadian dollar weakened relative to its United States counterpart, losing just over three-quarters of a cent to settle at 74.88 U.S. cents on Jan. 4.
— Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.
