MarketsFarm – Cash wheat bids across western Canada rose in sympathy with the US futures markets for the week ended Thursday. The strength came despite a firmer tone in the Canadian dollar.
Average wheat prices in Canada Western Red Spring (CWRS, 13.5 percent protein) rose by $ 11.40 to $ 14.90 per ton, according to price quotes from a cross-section of delivery points provided by PDQ (Price and Data Quotes ) were compiled. Average prices ranged from about $ 400.90 per ton in southeast Saskatchewan to $ 419.90 per ton in northern Alberta.
The quoted base levels varied from location to location and ranged from $ 54.70 to $ 73.60 per tonne above the futures when using the grain company method, the basis as the difference between US dollar-denominated futures and Canadian dollar cash offers specify.
Taking into account exchange rates by adjusting all in Canadian dollars, the CWRS base levels were between $ 9.50 and $ 21.50 below the futures.
Canada Prairie Spring Red (CPSR) wheat bids rose by $ 11 to $ 12.30 per ton, with prices ranging from $ 361.80 to $ 373.30 per ton.
Average durum prices increased $ 26.20 to $ 54.40 with bids ranging from $ 701.70 to $ 733.50 per tonne.
The Canadian dollar closed at 79.63 US cents on Thursday, almost three-quarters of a cents higher than its US counterpart.
The December summer wheat contract in Minneapolis, on which most of the CWRS contracts in Canada are based, traded at $ 9.4225 a bushel on Thursday, up 29.75 cents from the previous week.
Kansas City hard red winter wheat futures traded in Chicago are more closely linked to CPSR in Canada. December’s KC wheat contract was trading at $ 7.4125 a bushel on Thursday, up 9.5 cents from the previous week.
The Chicago Board of Trade’s December common wheat contract also closed on Thursday at $ 7.4125 a bushel, up 15.75 cents from the week.
– Phil Franz-Warkentin Reports for MarketsFarm from Winnipeg.