Western Canadian wheat: Red wheat down, durum up

WINNIPEG (MarketsFarm) – Wheat bids in Western Canada were mixed for the week ended Oct. 3. There were losses in Canadian Western Red Spring Wheat (CWRS) and Canada Prairie Red Spring (CPRS), while Canadian Western Amber Durum (CWAD) saw gains.

The Canadian dollar was higher for most of the past week, topping off at 75.55 U.S. cents on Oct. 1, but the loonie fell to 75.02 by Oct. 3.

Average CWRS (13.5 percent) wheat prices were down by C$8 to C$12 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about C$219 per tonne in southeastern Saskatchewan to as high as C$236 per tonne in northern and southern Alberta.

Quoted basis levels varied from location to location and ranged from $23 to $40 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$0.7502) CWRS bids ranged from US$164 to US$177 per tonne. That would put the currency adjusted basis levels at about US$19 to US$32 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$25 to C$42 below the futures.

Wheat bids for CPSR were down C$1 to C$5 per tonne. Prices ranged from C$180 per tonne in southeastern Saskatchewan to C$198 per tonne in southern Alberta.

Average durum prices were up by C$9 to C$18, with bids ranging from C$268 per tonne in western Saskatchewan to C$289 per tonne in western Manitoba.

The December spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.3375 per bushel on Oct. 3, down 15.50 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$4.0575 per bushel on Oct. 3, down 2.5 cents compared to the previous week.

The December Chicago Board of Trade soft wheat contract settled at US$4.8875 per bushel on Oct. 3, up 4.5 cents on the week.

The Canadian dollar closed at 75.02 U.S. cents on Oct. 3, down 0.39 of a cent from the previous week.

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