Winnipeg (CNS Canada) – Hard red spring wheat bids in Western Canada moved lower for the sixth straight week during the week ended September 1, as the advancing U.S. harvest, declines in the Minneapolis futures, and rising Canadian dollar all weighed on local prices.
Depending on the location, average Canada Western Red Spring (CWRS) wheat prices were down by C$11 to C$13 per tonne across the Prairie provinces, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about C$234 per tonne in western Manitoba, to as high as C$250 in eastern Manitoba.
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Quoted basis levels varied from location to location, but generally softened by about $2, to range from about $7 to $22 per tonne above the futures when using the grain company methodology of quoting the basis as the difference between the US dollar denominated futures and the Canadian dollar cash bids.
When accounting for currency exchange rates by adjusting Canadian prices to US dollars (C$1=US$0.8074 early September 1) CWRS bids ranged from US$189 to US$202 per tonne. That would put the currency adjusted basis levels at about US$25 to US$38 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$31 to C$47 below the futures.
Canada Prairie Red Spring (CPRS) wheat bids posted small gains in most regions, with prices ranging from C$153 to C$165 per tonne.
Average durum prices were steady to down by as much as C$16 per tonne, with bids in Saskatchewan coming in at about C$281 to C$284 per tonne.
The December spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$6.4025 per bushel on August 31, down by 29.00 US 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$4.3625 per bushel on August 31, up by 4.00 US cents compared to the previous week.
The September Chicago Board of Trade soft wheat contract settled at US$4.3450 on August 31, which was down by 0.75 US cents on the week.
The Canadian dollar was trading at 80.74 US cents on September 1, which was up by roughly three-quarters of a cent on the week.
