WINNIPEG,(MarketsFarm) – Wheat bids in Western Canada for the week ended Feb. 13 were steady to lower for Canadian Western Red Spring Wheat (CWRS), Canada Prairie Red Spring (CPRS) and Canadian Western Amber Durum (CWAD), as declines in United States wheat prices weighed on values.
The Canadian dollar was up two-tenths of a U.S. cent during the week, which also put some pressure on values.
Average CWRS (13.5 percent) wheat prices were down C$2 to C$3 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$223 per tonne in northeastern Saskatchewan, to as high as C$240 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$0.7544) CWRS bids ranged from US$168 to US$181 per tonne. That would put the currency adjusted basis levels at about US$13 to US$25 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$9 to C$19 below the futures.
Bids for CPSR wheat were either side of steady. Prices ranged from C$195 per tonne in southeastern Saskatchewan to C$215 per tonne in southern Alberta.
Average durum prices were down C$1 to C$3 per tonne, with bids ranging from C$263 per tonne in southwestern Saskatchewan to C$280 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$5.2675 per bushel on Feb. 13, down 5.75 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$4.6600 per bushel on Feb. 13, down 1.75 cents compared to the previous week.
The March Chicago Board of Trade soft wheat contract settled at US$5.4425 per bushel on Feb. 13, down 1.200 cents on the week.
The Canadian dollar closed at 75.44 U.S. cents on Feb. 13, up from 75.24 the previous week.