Winnipeg,(MarketsFarm) – Hard red spring wheat bids in Western Canada posted solid gains during the two-week holiday period ended Jan. 2, as gains in the United States futures more than made up for the bearish influence of the rising Canadian dollar.
Average Canada Western Red Spring (13.5 percent) wheat prices were up by C$5 to C$9 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$226 per tonne in northeastern Saskatchewan to as high as C$246.50 per tonne in southern Alberta.
Quoted basis levels varied from location to location and ranged from $21 to $41.50 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 everything into Canadian dollars (C$1=US$0.7697) CWRS basis levels ranged from C$12.00 to C$24 below the futures.
Bids for CPSR wheat were up by C$5 to $9 per tonne. Prices ranged from C$200 per tonne in southeastern Saskatchewan to C$224 per tonne in southern Alberta.
Average durum prices were mixed, posting small gains in some areas and losses in others, with bids ranging anywhere from C$263 to C$281 per tonne.
The March spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.5825 per bushel on Jan. 2, up by 18.25 cents over the past two weeks.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The March Kansas City wheat contract was quoted at US$4.8525 per bushel on Jan. 2, up 24.75 cents compared to two weeks prior.
The March Chicago Board of Trade soft wheat contract settled at US$5.6025 per bushel on Jan. 2, up 15 cents on the week.
The Canadian dollar closed at 76.97 U.S. cents on Jan. 2, which was up by roughly three-quarters of a cent compared to the previous week.