Hard red spring wheat bids in Western Canada posted solid gains during the week ended Sept. 21, as advances in the United States futures provided support and countered the bearish influence of the rising Canadian dollar.
Average Canada Western Red Spring (13.5 percent CWRS) wheat prices were up by C$4 to C$7 per tonne over the course of the week, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about C$240 per tonne in southeastern Saskatchewan, to as high as C$263 in southern Alberta.
Quoted basis levels varied from location to location and ranged from $11 to $34 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 (C$1=US$0.7742) CWRS bids ranged from US$186 to US$204 per tonne. That would put the currency adjusted basis levels at about US$25 to US$43 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 C$32 to C$55 below the futures.
Canada Prairie Red Spring (CPRS) wheat bids were stronger, gaining anywhere from C$6 to C$7 per tonne depending on the location. Prices ranged from C$211 to C$229 per tonne.
Average durum prices were lower, losing anywhere from C$8 to C$13 per tonne. Prices in southern Saskatchewan, where the bulk of the crop is grown, came in at about C$213 to C$220 per tonne.
The December spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.8250 per bushel on Sep. 21, up by 10.25 U.S. cents from the previous week.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The December Kansas City wheat contract was quoted at US$5.2525 per bushel on Sep. 21, up by 9.75 U.S. cents compared to the previous week.
The December Chicago Board of Trade soft wheat contract settled at US$5.2175 on Sep. 21, which was up by 10.25 U.S. cents on the week.
The Canadian dollar settled at 77.42 U.S cents on Sep. 21, which was up by about two-thirds of a cent on the week.