Western Canadian wheat bids make gains in most locations

WINNIPEG – Wheat bids in Western Canada were largely up for the week ended Jan. 25 supported by gains in most of the United States futures markets as the Canadian dollar was steady on the week.

Average Canadian Western Red Spring (13.5 percent CWRS) wheat prices were up C$1 to C$5, except in eastern Manitoba where prices were down C$1, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about C$253 per tonne in western Manitoba and southeastern Saskatchewan, to as high as C$273 in southern Alberta.

Quoted basis levels varied from location to location and ranged from $40 to $61 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$0.7544) CWRS bids ranged from US$191 to US$206 per tonne. That would put the currency adjusted basis levels at about US$6 to US$21 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$8 to C$28 below the futures.

Canada Prairie Red Spring (CPRS) wheat bids were stronger, increasing by around C$3 to C$5 per tonne, expect for southwestern Saskatchewan, which was down C$7 per tonne. Prices ranged from C$227 per tonne in southeastern and southwestern Saskatchewan to C$250 per tonne in southern Alberta.

Average durum prices were up, with bids ranging anywhere from C$223 per tonne in northwestern Saskatchewan to C$239 per tonne in western Manitoba.

The March spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.7475 per bushel on Jan. 25, up by half of an U.S. cent 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 March Kansas City wheat contract was quoted at US$5.0950 per bushel on Jan. 25, up by 3.5 U.S. cents compared to the previous week.

The March Chicago Board of Trade soft wheat contract settled at US$5.2000 per bushel on Jan. 25, up by 2.25 U.S. cents on the week.

The Canadian dollar was little changed, rising to 75.44 U.S. cents, up by 0.03 of an U.S. cent.

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