Hard red spring wheat bids in Western Canada climbed higher during the week ended Aug. 17, taking direction from most of the United States futures markets.
Average Canada Western Red Spring (13.5% CWRS) wheat prices were up by C$6 to C$9 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$247 per tonne in northwestern Saskatchewan, to as high as C$280 in southern Alberta.
Quoted basis levels varied from location to location and ranged from $17 to $50 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$0.7645) CWRS bids ranged from US$189 to US$213 per tonne. That would put the currency adjusted basis levels at about US$16 to US$41 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$21 to C$54 below the futures.
Canada Prairie Red Spring (CPRS) wheat bids were stronger, gaining anywhere from C$8 to C$10 per tonne depending on the location. Prices ranged from C$227 to C$246 per tonne.
Average durum prices were higher, with bids ranging anywhere from C$230 in northwestern Saskatchewan to C$260 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$6.0850 per bushel on Aug. 17, down by 0.0025 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$5.6900 per bushel on Aug. 17, up by 5.25 U.S. cents compared to the previous week.
The September Chicago Board of Trade soft wheat contract settled at US$5.6050 per bushel on Aug. 17, up by 13.75 cents on the week.
The Canadian dollar settled at 76.45 U.S cents on Aug. 17, which was up by 0.19 of a cent on the week.