CWRS bids rise, but run into resistance

Winnipeg – Hard red spring wheat bids in Western Canada edged higher during the week ended Aug. 10, although the United States futures backed away from their nearby highs and the North American wheat market showed signs of running into resistance.

Average Canada Western Red Spring (13.5 percent CWRS) wheat prices were up by C$1 to C$2 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$240 per tonne in northwestern Saskatchewan, to as high as C$272 in southern Alberta.

While the Minneapolis futures moved lower during the week, the Canadian dollar was also weaker which helped prop up the cash market.

Quoted basis levels varied from location to location and ranged from $17 to $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 Canadian prices to U.S. dollars (C$1=US$0.7626) CWRS bids ranged from US$183 to US$207 per tonne. That would put the currency adjusted basis levels at about US$17 to US$41 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$22 to C$54 below the futures.

Canada Prairie Red Spring (CPRS) wheat bids were softer, losing anywhere from C$1 to C$2 per tonne depending on the location. Prices ranged from C$219 to C$235 per tonne.

Average durum prices were narrowly mixed, with bids in southern Saskatchewan coming in at about C$250 to C$254 per tonne.

The December spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$6.2600 per bushel on Aug. 10, down by 3.75 U.S. 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$5.8500 per bushel on Aug. 10, down by 10.25 U.S. cents compared to the previous week.

The December Chicago Board of Trade soft wheat contract settled at US$5.6950 on Aug. 10, which was down by 10.25 U.S. cents on the week.

The Canadian dollar settled at 76.26 U.S cents on Aug. 10, which was down by about half a cent on the week.

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