Wheat bids in Western Canada were higher for the week ended Oct. 12, taking support from a weaker Canadian dollar.
Average Canada Western Red Spring (13.5% CWRS) wheat prices were up by C$11 to C$13 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$249 per tonne in southeastern Saskatchewan, to as high as C$272 in southern Alberta.
Quoted basis levels varied from location to location and ranged from $20 to $35 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.
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When accounting for currency exchange rates by adjusting Canadian prices to U.S. dollars (C$1=US$0.7674) CWRS bids ranged from US$191 to US209 per tonne. That would put the currency adjusted basis levels at about US$20 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$26 to C$49 below the futures.
Canada Prairie Red Spring (CPRS) wheat bids were weaker, dropping anywhere from C$5 to C$6 per tonne depending on the location. Prices ranged from C$215 to C$233 per tonne in Alberta and Saskatchewan.
Average durum prices were narrowly mixed, with bids ranging anywhere from C$208 in northwestern Saskatchewan to C$221 in western Manitoba, depending on the location.
The December spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.79600 per bushel on Oct. 5, up by 4.75 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$5.2425 per bushel on Oct. 12, unchanged compared to the previous week.
The December Chicago Board of Trade soft wheat contract settled at US$5.1725 per bushel on Oct. 12, down by 3.75 cents on the week.
The Canadian dollar settled at 76.74 U.S cents on Oct. 12, which was down by just over a half of a cent on the week.
