Prairie wheat bids descend with U.S. futures

Hard red spring wheat bids in Western Canada fell for the week ended Aug. 24, as a rising Canadian dollar and dropping United States futures prices pressured prices.

Average Canada Western Red Spring (13.5 percent CWRS) wheat prices were down by C$11 to C$16 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$236 per tonne in northwestern Saskatchewan, to as high as C$265 in southern Alberta.

Quoted basis levels varied from location to location and ranged from $19 to $48 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$0.7671) CWRS bids ranged from US$181 to US$203 per tonne. That would put the currency adjusted basis levels at about US$14 to US$36 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$17 to C$46 below the futures.

Canada Prairie Red Spring (CPRS) wheat bids were stronger, gaining anywhere from C$11 to C$12 per tonne depending on the location. Prices ranged from C$216 to C$234 per tonne.

Average durum prices were trading both sides of unchanged, with bids ranging anywhere from C$230 in northwestern Saskatchewan to C$259 in southern Alberta, depending on the location.

The September spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.7275 per bushel on Aug. 24, down by 35.75 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 September Kansas City wheat contract was quoted at US$5.1925 per bushel on Aug. 24, down by 45.75 U.S. cents compared to the previous week.

The December Chicago Board of Trade soft wheat contract settled at US$5.3650 per bushel on Aug. 24, down by 43.25 cents on the week.

The Canadian dollar settled at 76.71 U.S cents on Aug. 24, which was up by 0.26 of a cent on the week.

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