Winnipeg, Sept. 2 (CNS Canada) – Spring wheat cash bids across Western Canada moved down at one point during the week ended September 2, but clawed back toward unchanged as the week progressed to finish slightly ahead of where they were seven days earlier as the markets mirrored activity in the US futures.
Depending on the location, average Canada Western Red
Spring (CWRS) wheat prices were up a dollar to down a dollar per tonne compared to the previous week, according to price quotes from a cross-section of delivery points across the Prairie Provinces compiled by PDQ (Price and Data Quotes). Average prices ranged from about C$199 per tonne in Saskatchewan’s southeast region, to as high as C$211 in southern parts of Alberta.
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Quoted basis levels varied from location to location, but held reasonably steady to range from about C$18 to C$30 per tonne above the futures when using the grain company methodology of quoting the basis as the difference between the US dollar denominated futures and the Canadian dollar cash bids.
When accounting for currency exchange rates by adjusting Canadian prices to US dollars (C$1=US$0.7693 as of September 2) CWRS bids ranged from US$153 to US$162 per tonne. That would put the currency adjusted basis levels at about US$18 to US$27 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$23 to C$35 below the futures.
Bids for Canada Prairie Red Spring (CPRS) wheat reported by PDQ were also relatively unchanged compared to the previous week. Average CPRS prices came in at about C$156 to C$169 per tonne in Saskatchewan and Alberta.
Average durum prices were steady to slightly higher, with bids in Saskatchewan coming in at about C$245 per tonne.
The December spring wheat contract in Minneapolis, which most CWRS contracts in Canada are based off of, was quoted at US$4.9150 per bushel on September 2, down about 1.25 US cents per bushel 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 December Kansas City wheat contract was quoted at US$4.1325 per bushel on September 2, down about 3.50 US cents compared to the previous week.
The December Chicago Board of Trade soft wheat contract settled at US$3.9925 on September 2, which was down by about 8.24 US cents on the week.
The Canadian dollar was trading at 76.93 US cents on September 2, which was steady compared to the previous week.
