Prairie wheat bids rise following lead of most U.S. futures

Winnipeg(CNS Canada) – Wheat bids in Western Canada rose in price for the week ended Feb. 9, which for the most part followed the lead of the United States futures markets.

Depending on the location, average Canada Western Red Spring (13.5 per cent protein CWRS) wheat prices rose in Western Canada by C$7 to C$9, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about C$235 per tonne in southeastern Saskatchewan, to as high as C$250 in northern Alberta.

Quoted basis levels varied from location to location, but rose to range from $13 to $28 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$0.7931) CWRS bids ranged from US$186 to US$198 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$24 to US$36 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$30 to C$45 below the futures.

Canada Prairie Red Spring (CPRS) wheat bids were up by C$2 to C$4. Prices across the Prairies ranged from C$188 per tonne in southwestern Saskatchewan to C$209 per tonne in southern Alberta.

Average durum prices fell by a dollar to C$2 in most of Western Canada, bids ranged from about C$264 to C$271 per tonne. For the last few weeks northwestern Saskatchewan had been an outlier at around the C$232 per tonne mark, however this week it rose C$31 to fall in line with other wheat bids in Western Canada.

The March spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$6.0350 per bushel on Feb. 9, which was down by a quarter of a U.S. cent 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$4.6550 per bushel on Feb. 9, up by 2.25 U.S. cents compared to the previous week.

The March Chicago Board of Trade soft wheat contract settled at US$4.49 on Feb. 9, which was up by 2.25 U.S. cents on the week.

The Canadian dollar settled at 79.31 U.S. cents on Feb. 9, which was down by almost a cent and a half compared to the previous week. The loonie fell in value over the week as the price of oil dropped and the stock markets in Canada and the U.S. were volatile.

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