CNS Canada — Cash spring wheat bids across Western Canada moved lower during the week ended Friday, as continued strength in the Canadian dollar more than countered any support from advances in U.S. futures.
Average Canada Western Red Spring (CWRS) wheat prices were down by $3 to $5 per tonne over the week, according to price quotes from a cross-section of delivery points across the Prairie provinces compiled by PDQ (Price and Data Quotes). Average prices ranged from about $224 per tonne in southeastern Saskatchewan and western Manitoba, to as high as $240 in southern Alberta.
Quoted basis levels varied from location to location, but generally sat at $42 to $58 per tonne above the futures when using the grain company methodology of quoting the basis as the difference between U.S. dollar-denominated futures and Canadian dollar cash bids.
When accounting for the currency exchange rates by adjusting the Canadian prices to U.S. dollars, CWRS bids ranged from US$160 to $171 per tonne. That would put the currency adjusted basis levels at about US$11-$22 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$15 to $31 below the futures.
Average Canada Prairie Spring Red (CPSR) bids were down by $2-$5 per tonne. Average CPSR prices came in at about $183 per tonne in Manitoba, $186-$198 per tonne in Saskatchewan, and $200-$203 per tonne in Alberta.
Average durum prices were down during the week, losing anywhere from $7 to $9 per tonne. Bids in southern Saskatchewan, where the bulk of the crop is grown, were down by $9, to sit at roughly $310 per tonne.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Friday at US$5 per bushel, up three U.S. 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 at US$4.72 per bushel on Friday, up US1.25 cents compared to the previous week.
The March Chicago Board of Trade soft wheat contract settled Friday at US$4.7925, US3.75 cents higher compared to one week earlier.
The Canadian dollar closed at US71.4 cents on Friday, up by about three-quarters of a cent relative to its U.S. counterpart compared to Jan. 22.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.