Winnipeg – Wheat bids in Western Canada continued to fall during the week ended Aug. 30, following the lead of the United States futures markets.
Average Canada Western Red Spring (13.5 percent CWRS) wheat prices were down by C$4 to C$6 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$232 per tonne in northwestern Saskatchewan, to as high as C$261 in southern Alberta.
Quoted basis levels varied from location to location and ranged from $18 to $47 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$0.7704) CWRS bids ranged from US$178 to US$201 per tonne. That would put the currency adjusted basis levels at about US$13 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 weaker, dropping anywhere from C$5 to C$6 per tonne depending on the location. Prices ranged from C$210 to C$229 per tonne.
Average durum prices were lower, with bids ranging anywhere from C$227 in northwestern Saskatchewan to C$255 in southern Alberta, depending on the location.
The December spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.8375 per bushel on Aug. 30, down by 6.50 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 December Kansas City wheat contract was quoted at US$5.4100 per bushel on Aug. 30, down by 5.75 U.S. cents compared to the previous week.
The December Chicago Board of Trade soft wheat contract settled at US$5.3500 per bushel on Aug. 30, down by 1.50 cents on the week.
The Canadian dollar settled at 77.04 U.S cents on Aug. 30, which was up by 0.33 of a cent on the week.