Hard red wheat bids rise in Western Canada

Hard red spring wheat bids in Western Canada strengthened during the week ended Nov. 30, as gains in the Minneapolis futures and a softer tone in the Canadian dollar helped basis levels improve.

Average Canada Western Red Spring (13.5 percent CWRS) wheat prices were up by C$1 to C$3 per tonne over the course of the week, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about C$252 per tonne in southeastern Saskatchewan, to as high as C$274 in southern Alberta.

Quoted basis levels varied from location to location, but generally improved to range from $40 to $62 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$0.7518) CWRS bids ranged from US$189 to US$206 per tonne. That would put the currency adjusted basis levels at about US$6 to US$23 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$8 to C$31 below the futures.

Canada Prairie Red Spring (CPRS) wheat bids were stronger, gaining anywhere from C$2 to C$5 per tonne depending on the location. Prices ranged from C$221 to C$241 per tonne.

Average durum prices were up by C$1 to C$2 in most locations. Prices in southern Saskatchewan, where the bulk of the crop is grown, came in at about C$211 to C$220 per tonne.

The March spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.7575 per bushel on Nov. 30, up by 4.50 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 March Kansas City wheat contract was quoted at US$5.0025 per bushel on Nov. 30, up by 4.25 U.S. cents compared to the previous week.

The March Chicago Board of Trade soft wheat contract settled at US$5.1575 on Nov. 30, which was up by 8.50 U.S. cents on the week.

The Canadian dollar settled at 75.18 U.S cents on Nov. 30, which was down by nearly half of a cent relative to its U.S. counterpart.

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