Canadian wheat bids edge lower – harvest and C$ weigh

Winnipeg (MarketsFarm) – Wheat bids in Western Canada edged lower during the week ended Sept. 5, as seasonal harvest pressure and strength in the Canadian dollar weighed on values.

 

The Canadian dollar was up by roughly a third of a cent relative to its United States counterpart on the week. The Minneapolis spring wheat futures held steady, but the Kansas City and Chicago winter wheat contracts weakened slightly.

 

Average CWRS (13.5 percent) wheat prices were down by 50 cents to C$1.50 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$202 per tonne in southeastern Saskatchewan to as high as C$221 per tonne in southern Alberta.

 

Quoted basis levels varied from location to location and ranged from $17.50 to $35.50 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 everything into Canadian dollars (C$1=US$0.7560) CWRS basis levels ranged from C$24 to C$42 below the futures.

 

Bids for CPSR wheat were down by C$1 to C$2 per tonne. Prices ranged from C$170 per tonne in southeastern Saskatchewan to C$187 per tonne in southern Alberta.

 

Average durum prices were down by roughly C$2 per tonne in most locations, with bids ranging anywhere from C$239 to C$250 per tonne.

 

The December spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.0200 per bushel on Sept. 5, up by half a cent from the previous week.

 

The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The December Kansas City wheat contract was quoted at US$3.9375 per bushel on Sept. 5, down 7.75 cents compared to the previous week.

 

The December Chicago Board of Trade soft wheat contract settled at US$4.7450 per bushel on Sept. 5, down 6.50 cents on the week.

 

The Canadian dollar closed at 75.60 U.S. cents on Sept. 5, an increase of roughly a third of a cent compared to the previous week.

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