Prairie Wheat Weekly: Declines in U.S. wheat, loonie lead to mixed prices

Glacier FarmMedia | MarketsFarm — Spring wheat cash prices were mixed for the week ended Oct. 31, as pressure from declines in United States wheat futures were countered by support from a weaker Canadian dollar that encourages more export sales.

Average CWRS (13.5%) prices lost C$3.70 to adding C$2.20 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Those prices ranged from about C$269.00 per tonne in southeastern Saskatchewan to C$290.40 per tonne in southern Alberta.

Quoted basis levels varied from location to location and ranged from C$47.00 to C$68.30 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.

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When accounting for currency exchange rates by adjusting Canadian prices to United States dollars (C$1=US$0.7186), CWRS bids ranged from US$193.30 to US$208.70 per tonne. That would put the currency adjusted basis levels at about US$13.40 to US$28.70 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 ranged from C$9.60 to C$20.70 below the futures.

Average CPRS (11.5%) wheat tacked on 20 cents to losing $3.50 per tonne. Bids ranged from C$247.30 per tonne in southeastern Saskatchewan to C$272.00 per tonne in southern Alberta.

Average CWAD prices gave up C$1.10 to adding C$0.60 per tonne. Bids ranged from C$322.00 per tonne in northwestern Saskatchewan to C$341.20 per tonne in southern Alberta.

The December spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$6.0425 per bushel on Oct. 31, dropping 13.75 cents on the week.

The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The December Kansas City wheat contract was quoted at US$5.6925 per bushel on Oct. 31, forgoing 17.75 cents from a week ago.

The December Chicago Board of Trade soft wheat contract settled at US$5.7050 per bushel on Oct. 31, losing 11 cents.

The loonie was down 0.37 of a cent on the week, settling at 71.86 U.S. cents.