CWRS bids down, CPSR bids up across Prairies

CNS Canada — Canada Western Red Spring (CWRS) wheat cash bids across Western Canada were steady to slightly lower during the week ended Friday, while Canada Prairie Spring Red (CPSR) bids posted small gains.

Average CWRS prices were down by C$1-$4 per tonne across the three Prairie provinces, according to price quotes from a cross-section of delivery points. Bids ranged from about $209 per tonne in north-central Saskatchewan, to as high as $224 per tonne in southern Alberta.

Quoted basis levels varied from location to location, but held steady overall at an average of about $31 above the futures when using the grain company methodology of quoting the basis as the difference between U.S. dollar-denominated futures and the Canadian dollar cash bids.

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When accounting for the currency exchange rates by adjusting the Canadian prices to U.S. dollars, CWRS bids ranged from US$158-$169 per tonne. That would put the currency adjusted basis levels at about US$17-$28 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$22 to $37 below the futures.

Average CPSR bids were up by C$3-$6 per tonne. CPSR prices came in at about $177 per tonne in Manitoba, $186 per tonne in Saskatchewan, and $197-$200 per tonne in Alberta.

Soft white spring (CWSWS) wheat prices were down by about C$10 per tonne, ranging from C$190 to $197 per tonne in Alberta.

Winter (CWRW) wheat prices were steady to C$4 per tonne lower. Prices ranged from about C$177 to $182 per tonne, with the best levels in southern Saskatchewan.

Durum (CWAD) prices were mixed, but were up by about C$5 per tonne in southern Saskatchewan where the bulk of the crop is grown, coming in at $323 per tonne.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.115 per bushel on Friday, down 6.5 cents from the week prior.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The December K.C. wheat contract was quoted Friday at US$4.835 per bushel, down 9.25 cents from last week.

The December Chicago Board of Trade soft wheat contract settled at US$4.85 on Friday, 20.25 cents weaker compared to the week prior.

The Canadian dollar closed Friday at US75.67 cents, down by about a third of a cent relative to its U.S. counterpart compared to the previous week.

— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting. Follow CNS Canada at @CNSCanada on Twitter.

Table: The weekly snapshot of average published prices, released Aug. 31, 2015. Futures prices (US$ per tonne) vary slightly due to changes while data is collected. Cash bids (C$ per tonne) have currency conversion included in the basis. Source: AGCanada.com.

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