Prairie wheat bids mixed while U.S. futures rise

Winnipeg(CNS Canada) – Wheat bids in Western Canada were mixed for the week ended Feb. 15, while the United States futures markets rose.

Depending on the location, average Canada Western Red Spring (13.5 per cent protein CWRS) wheat prices were mixed in Western Canada with some unchanged and other rising by C$1 to C$2, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes).

However in eastern Manitoba prices dropped by a dollar to C$244 per tonne. Average prices ranged from about C$236 per tonne in southeastern Saskatchewan, to as high as C$251 in northern Alberta.

Quoted basis levels varied from location to location, but rose to range from $12 to $27 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$0.7996) CWRS bids ranged from US$189 to US$203 per tonne, which was up on a U.S. dollar basis on the week. That would put the currency adjusted basis levels at about US$21 to US$35 below the futures.

Looking at it the other way around, ifthe Minneapolis futures are converted to Canadian dollars, CWRS basis levels across Western Canada range from C$29 to C$47 below the futures.

Canada Prairie Red Spring (CPRS) wheat bids were up by C$6 to C$7. Prices across the Prairies ranged from C$194 per tonne in southwestern Saskatchewan to C$215 per tonne in southern Alberta.

Average durum prices fell by C$3 to C$5 in most of Western Canada, bids ranged from about C$258 to C$267 per tonne.

The March spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$6.0850 per bushel on Feb. 15, which was up by five 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$4.78 per bushel on Feb. 15, up by 12.5 U.S. cents compared to the previous week.

The March Chicago Board of Trade soft wheat contract settled at US$4.6175 on Feb. 15, which was up by 12.75 U.S. cents on the week.

The Canadian dollar settled at 79.97 U.S. cents on Feb. 15, which rose by almost three quarters of a cent over the course of the week.

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