WINNIPEG,(MarketsFarm) – Wheat bids in Western Canada for the week ended Feb. 6 were up for Canadian Western Red Spring Wheat (CWRS) and Canada Prairie Red Spring (CPRS). Bids for Canadian Western Amber Durum (CWAD) were steady to higher.
The Canadian dollar was down by approximately four-tenths of a cent during the week.
Average CWRS (13.5 percent) wheat prices were higher C$3 to C$5 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$225 per tonne in northeastern Saskatchewan, to as high as C$249 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from $30 to $46 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$0.7524) CWRS bids ranged from US$170 to US$182 per tonne. That would put the currency adjusted basis levels at about US$13 to US$26 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$20 below the futures.
Bids for CPSR wheat were up by C$2 to C$5 per tonne. Prices ranged from C$204 per tonne in southeastern Saskatchewan to C$225 per tonne in southern Alberta.
Average durum prices ranged from down C$2 to up C$9, with bids ranging from C$272 per tonne in northwestern Saskatchewan to C$281 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$5.5575 per bushel on Jan. 23, up 5.50 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 March Kansas City wheat contract was quoted at US$4.9225 per bushel on Jan. 23, up 7.50 cents compared to the previous week.
The March Chicago Board of Trade soft wheat contract settled at US$5.8050 per bushel on Jan. 23, up 15.25 cents on the week.
The Canadian dollar closed at 76.09 U.S. cents on Jan. 23, down 0.57 of a cent from the previous week.