Western Canadian hard spring wheat bids firm in early March

Winnipeg,(MarketsFarm) – Hard red spring wheat bids in Western Canada moved higher during the week ended March 5, as Minneapolis futures attempted to stabilize above nearby lows and the Canadian dollar softened.

Average Canada Western Red Spring (13.5 percent) wheat prices were up by C$1.50 to C$5.50 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$0.7454) CWRS basis levels ranged from C$6 to C$16.50 below the futures.

Bids for CPSR wheat were mixed, losing 50 cents per tonne in some areas and gaining up to C$3 in others. Prices ranged from C$185 per tonne in southeastern Saskatchewan to C$204 per tonne in southern Alberta.

Average durum prices were stronger, gaining C$5 to C$8.50 per tonne, with bids ranging anywhere from C$271.50 to C$286 per tonne.

The May spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.22 per bushel on March 5, down by two cents from the previous week, but well above major chart support around US$5.15 per bushel.

The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The May Kansas City wheat contract was quoted at US$4.4625 per bushel on March 5, down 5.50 cents compared to the previous week.

The May Chicago Board of Trade soft wheat contract settled at US$5.1875 per bushel on March 5, down 8.75 cents on the week.

The Canadian dollar closed at 74.54 U.S. cents on March 5, which was down by roughly a third of a cent compared to the previous week.

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