Western Canadian wheat bids slide down

WINNIPEG – Wheat bids in Western Canada were down for the week ended Feb. 22, as the Canadian dollar gained ground during the week and United States futures dropped.

Average Canadian Western Red Spring (13.5 percent CWRS) wheat prices were down by C$2 to C$12, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about C$239 per tonne in western Manitoba to as high as C$265 in southern Alberta.

Quoted basis levels varied from location to location and ranged from $30 to $56 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$0.7591) CWRS bids ranged from US$181 to US$201 per tonne. That would put the currency adjusted basis levels at about US$8 to US$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 C$10 to C$36 below the futures.

Canada Prairie Red Spring (CPRS) wheat bids were weaker, decreasing by C$7 to C$12 per tonne. Prices ranged from C$204 per tonne in southwestern Saskatchewan to C$228 per tonne in southern Alberta.

Average durum prices were down, with bids ranging anywhere from C$235 per tonne in northwestern and southwestern Saskatchewan to C$245 per tonne in western Manitoba.

The May spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.6450 per bushel on Feb. 22, down by 2.50 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 May Kansas City wheat contract was quoted at US$4.6600 per bushel on Feb. 22, down by 18.5 U.S. cents compared to the previous week.

The May Chicago Board of Trade soft wheat contract settled at US$4.9175 per bushel on Feb.22, down by 15.25 U.S. cents on the week.

The Canadian dollar closed at 75.91 U.S. cents on Feb, an increase of approximately three-quarters of a cent from the previous week.

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