WINNIPEG,(MarketsFarm) – Wheat bids in Western Canada for the week ended Feb. 20 trade either side of steady for Canadian Western Red Spring Wheat (CWRS), Canada Prairie Red Spring (CPRS) and Canadian Western Amber Durum (CWAD), despite gains in the United States futures.
The Canadian dollar was virtually unchanged for the week, which provided little direction.
Average CWRS (13.5%) wheat prices were down C$1 to up C$1 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$223 per tonne in northeastern Saskatchewan, to as high as C$241 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from $28 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$0.7545) CWRS bids ranged from US$168 to US$182 per tonne. That would put the currency adjusted basis levels at about US$13 to US$26 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$10 to C$20 below the futures.
Bids for CPSR wheat were either side of steady. Prices ranged from C$193 per tonne in southeastern Saskatchewan to C$215 per tonne in southern Alberta.
Average durum prices were steady, with bids ranging from C$263 per tonne in southwestern Saskatchewan to C$280 per tonne in western Manitoba.
The March spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.2950 per bushel on Feb. 20, up 2.75 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$4.7375 per bushel on Feb. 20, up 7.75 cents compared to the previous week.
The March Chicago Board of Trade soft wheat contract settled at US$5.6000 per bushel on Feb. 20, up 15.75 cents on the week.
The Canadian dollar closed at 75.45 U.S. cents on Feb. 20, on a tiny gain of only 0.01 of a cent.