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Prairie wheat bids mixed with choppy loonie

Winnipeg, Dec. 4 (CNS Canada), Dec 04, 2017 (Commodity News Service Canada, Inc. via COMTEX) --

Hard red spring wheat bids in Western Canada were mixed for the week ended Dec. 1, as the Canadian dollar saw wide price swings during the course of the week.

Depending on the location, average Canada Western Red Spring (13.5 per cent protein CWRS) wheat prices were down by a dollar per tonne in some areas of Western Canada but increased in others by C$3 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$235 per tonne in western Manitoba, to as high as C$260 in southern Alberta.

Quoted basis levels varied from location to location, but fell slightly to range from about $4 to $29 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 Canadian prices to U.S. dollars (C$1=US$0.7856) CWRS bids ranged from US$185 to US$204 per tonne, which was down slightly on a U.S. dollar basis on the week. That would put the currency adjusted basis levels at about US$37 to US$46 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$34 to C$59 below the futures.

Canada Prairie Red Spring (CPRS) wheat bids were anywhere from C$5 to C$7 higher. Prices across the Prairies ranged from C$174 per tonne in southeastern Saskatchewan to C$194 per tonne in southern Alberta.

Average durum prices held steady generally, with bids in Saskatchewan and Manitoba ranging from about C$269 to C$281 per tonne.

The December spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$6.1050 per bushel on Dec. 1, which was down by 13 U.S. cents 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 December Kansas City wheat contract was quoted at US$4.2025 per bushel on Dec. 1, up by 5.75 U.S. cents compared to the previous week.

The December Chicago Board of Trade soft wheat contract settled at US$4.1425 on Dec. 1, which was down by 1.5 U.S. cents on the week.

The Canadian dollar settled at 78.56 U.S. cents on Dec. 1, which was down by approximately a tenth of a cent compared to the previous week. Overall the dollar was down during the week but shot up Friday as Statistics Canada released its November job numbers which showed Canada had the lowest rate of unemployment since 2008.

Ashley Robinson, Commodity News Service Canada

Copyright 2017 Commodity News Service Canada, Inc.

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