WINNIPEG,(MarketsFarm) – Wheat bids in Western Canada were generally up for the week ended August 8. There were gains in Canadian Western Red Spring Wheat (CWRS) and Canada Prairie Red Spring (CPRS) in all locations. Canadian Western Amber Durum (CWAD) was either side of steady, depending on location.
The Canadian dollar was down by almost a quarter of a cent and provided support, as did increases in Kansas City, Chicago and Minneapolis wheat prices.
Average CWRS (13.5 percent) wheat prices were up by C$1 to C$3 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$209 per tonne in southeastern Saskatchewan to as high as C$221 per tonne in the Peace River region.
Quoted basis levels varied from location to location and ranged from $18 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$158 to US$171 per tonne. That would put the currency adjusted basis levels at about US$20 to US$33 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$26 to C$44 below the futures.
Wheat bids for CPSR were up C$4 to C$7 per tonne. Prices ranged from C$176 per tonne in southern Saskatchewan to C$194 per tonne in southern Alberta.
Average durum prices were either side of steady, with bids ranging anywhere from C$233 per tonne in western 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$5.2050 per bushel on August 8, up 2.0 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$4.1850 per bushel on August 8, up 2.75 cents compared to the previous week.
The September Chicago Board of Trade soft wheat contract settled at US$4.9850 per bushel on August 8, up 22.75 cents on the week.
The Canadian dollar closed at 75.43 U.S. cents on Aug. 8, a decrease of 0.23 of a cent from the previous week.