Western Canadian wheat: Bids down across U.S. markets

WINNIPEG, (MarketsFarm) – Wheat bids in Western Canada were down for the week ended August 1. There were losses in Canadian Western Red Spring Wheat (CWRS), Canadian Western Amber Durum (CWAD) and Canada Prairie Red Spring (CPRS) in all locations. Little change in the Canadian dollar and declines in Kansas City, Chicago and Minneapolis wheat prices weighed on values.

 

Average CWRS (13.5 percent) wheat prices were down by C$7 to C$11 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$208 per tonne in southeastern Saskatchewan to as high as C$226 per tonne in southern Alberta.

 

Quoted basis levels varied from location to location and ranged from $17 to $35 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$0.7566) CWRS bids ranged from US$157 to US$171 per tonne. That would put the currency adjusted basis levels at about US$20 to US$34 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$20 to C$34 below the futures.

 

Wheat bids for CPSR were down C$11 to C$19 per tonne. Prices ranged from C$172 per tonne in southeastern Saskatchewan to C$190 per tonne in southern Alberta.

 

Average durum prices were down, with bids ranging anywhere from C$232 per tonne in northwestern Saskatchewan to C$242 per tonne in southern Alberta.

 

The September spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.1850 per bushel on August 1, down 4.50 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 September Kansas City wheat contract was quoted at US$4.1575 per bushel on August 1, down 1.63 cents compared to the previous week.

 

The September Chicago Board of Trade soft wheat contract settled at US$4.7575 per bushel on August 1, down 2.38 cents on the week.

 

The Canadian dollar closed at 75.66 U.S. cents on August 1, a decrease of 0.29 of a cent from the previous week.

 

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