Rising U.S. futures underpin Canadian wheat bids

Average Canada Western Red Spring (13.5 percent) wheat prices were up by C$5 to C$7.50 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$220 per tonne in northeastern Saskatchewan to as high as C$238.50 per tonne in southern Alberta. | File photo

Winnipeg,(MarketsFarm) – Hard red spring wheat bids in Western Canada posted solid gains during the week ended Dec. 19, taking some direction from the rising United States futures.

Average Canada Western Red Spring (13.5 percent) wheat prices were up by C$5 to C$7.50 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$220 per tonne in northeastern Saskatchewan to as high as C$238.50 per tonne in southern Alberta.

Quoted basis levels varied from location to location and ranged from $34 to $52.50 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$0.7621) CWRS basis levels ranged from C$3 to C$14 below the futures.

Bids for CPSR wheat were up by C$5 to $12 per tonne. Prices ranged from C$191 per tonne in southeastern Saskatchewan to C$214 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$5.4000 per bushel on Dec. 19, up by 17 cents from the previous week.

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$4.6050 per bushel on Dec. 19, up 17.75 cents compared to the previous week.

The March Chicago Board of Trade soft wheat contract settled at US$5.4525 per bushel on Dec. 19, up 15 cents on the week.

The Canadian dollar closed at 76.21 U.S. cents on Dec. 19, which was up by a third of a cent compared to the previous week.

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