CWRS wheat bids rise with U.S. futures

CNS Canada — Cash bids for Canada Western Red Spring (CWRS) wheat across the Prairies generally moved higher during the week ended Friday.

Average CWRS prices gained about $7-$9 per tonne, with prices ranging from about $210 per tonne in north-central Saskatchewan to $228 in Manitoba, according to bids from a cross-section of delivery points across Western Canada.

Basis levels varied from location to location, but generally showed some improvement if the currency exchange rates between U.S. dollar-denominated futures and Canadian dollar bids were ignored.

When accounting for the currency by adjusting the Canadian prices to U.S. dollars, CWRS bids ranged from US$168.50 to $183, which would put the currency-adjusted basis levels relatively unchanged on the week at US$35-$49 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$44 to $61 below the futures.

Average Canada Prairie Spring Red (CPSR) bids were up by $5 to down by $1 per tonne during the week. CPSR prices came in at about $176 in Manitoba, at about $180 per tonne in Saskatchewan, and $191-$198 in Alberta.

Soft white spring (CWSWS) wheat prices were up by about $5-$6 per tonne, ranging from $191 to $194 per tonne in Alberta. Winter wheat prices were narrowly mixed, ranging from $165 to $171 per tonne across Western Canada.

Durum prices held steady, with prices in southern Saskatchewan, where the bulk of the crop is grown, unchanged at $342 per tonne.

The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.87 per bushel on Friday, up 10 cents from the previous week.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The March K.C. wheat contract was quoted Friday at US$5.6275 per bushel, up 0.75 cents from last week.

The March Chicago Board of Trade soft wheat contract settled at US$5.33 on Friday, six cents higher compared to the week prior.

The Canadian dollar finished the week at US80.25 cents, up by nearly half a cent compared to the previous week.

— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

Table: The weekly snapshot of average published prices, as of Feb. 17, 2015. Futures prices are in US$ per tonne and vary slightly due to changes while data is collected. Cash bids are in C$ per tonne, with currency conversion included in the basis. Source: AGCanada.com.

CWRS Future Basis Net
Manitoba 218.18 10.36 228.54
Sask North Central… 217.37… -6.86….. 210.51
Sask South 217.25 2.96 220.21
Alberta South 218.74 0.32 219.05
Alberta Central 218.73 -3.08 215.66
Peace 219.03 -1.43 217.61
CPSR Future Basis Net
Manitoba 209.74 -33.50 176.24
Sask North Central 207.98 -27.63 180.35
Sask South 208.38 -27.97 180.41
Alberta South 211.12 -15.24 195.89
Alberta Central 210.98 -12.91 198.08
Peace 210.23 -18.95 191.28
CWSWS Future Basis Net
Alberta South 197.71 -6.97 190.74
Alberta Central 198.11 -4.09 194.02
Peace 197.19 -3.64 193.55
CWRW Future Basis Net
Manitoba 208.70 -39.93 168.77
Sask North Central 208.15 -42.62 165.52
Sask South 207.82 -40.07 167.75
Alberta South 211.12 -43.88 167.24
Alberta Central 210.98 -39.24 171.74
Peace 210.15 -39.30 170.85
CWAD     Net
Sask North Central 357.48
Sask South 342.00
Alberta South 346.74
Alberta Central 377.00

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