Winnipeg (MarketsFarm) – Wheat bids in Western Canada were mixed during the week ended Oct. 10, with gains in some classes and losses in others as the domestic market reacted to adverse harvest weather and mixed activity in the United States futures.
Average CWRS (13.5 percent) wheat prices were up by C$4 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$223 per tonne in southeastern Saskatchewan to as high as C$241.50 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from $26 to $45 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$0.7522) CWRS basis levels ranged from C$20 to C$38.50 below the futures. The Canadian dollar basis tightened by about four to five dollars, as persistent harvest concerns helped cash bids outpace the Minneapolis futures higher.
However, bids for CPSR wheat were down by 50 cents to C$2.50 per tonne. Prices ranged from C$180 per tonne in southeastern Saskatchewan to C$195.50 per tonne in southern Alberta.
Average durum prices were steady to slightly lower across the Prairies, with bids ranging anywhere from C$267 to C$289 per tonne, as the durum market backed away after rising sharply the previous week.
The December spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.3525 per bushel on Oct. 10, up by 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 CPSR in Canada.
The December Kansas City wheat contract was quoted at US$4.0325 per bushel on Oct. 10, down 2.50 cents compared to the previous week.
The December Chicago Board of Trade soft wheat contract settled at US$4.93 per bushel on Oct. 10, up 4.25 cents on the week.
The Canadian dollar closed at 75.22 U.S. cents on Oct. 10, an increase of roughly a fifth of a cent compared to the previous week.