WINNIPEG – Wheat bids in Western Canada were mostly weaker for the week ended Jan. 11, as a stronger Canadian dollar weighed on prices.
Average Canada Western Red Spring (13.5 per cent CWRS) wheat prices were down, falling by C$3 to C$4 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$246 per tonne in southeastern Saskatchewan, to as high as C$267 in southern Alberta.
Quoted basis levels varied from location to location and ranged from $36 to $57 per tonne above the futures when using the grain company methodology of quoting the basis as the difference between the United States 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$0.7542) CWRS bids ranged from US$186 to US$201 per tonne. That would put the currency adjusted basis levels at about US$1 to US$26 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$10 to C$31 below the futures.
Canada Prairie Red Spring (CPRS) wheat bids were slightly weaker, falling by around C$1 per tonne depending on the location. Prices ranged from C$222 to C$244 per tonne in Alberta and Saskatchewan.
Average durum prices were slightly stronger, with bids ranging anywhere from C$220 in northwestern Saskatchewan to C$236 in western Manitoba, depending on the location.
The March spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.7000 per bushel on Jan. 11, down by a quarter of a U.S. cent 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 March Kansas City wheat contract was quoted at US$5.0450 per bushel on Jan. 11, down by 1.50 U.S. cents compared to the previous week.
The March Chicago Board of Trade soft wheat contract settled at US$5.1950 per bushel on Jan. 11, up by 2.5 U.S. cents on the week.
The Canadian dollar settled at 75.42 U.S cents on Jan. 11, up by 0.85 of a U.S. cent on the week.