Prairie CWRS wheat bids drop with U.S. futures

(Photo courtesy Canada Beef Inc.)

CNS Canada — Cash bids for Canada Western Red Spring (CWRS) wheat across the Prairies moved lower during the week ended Friday, taking most of their direction from a downturn in U.S. futures.

Average CWRS prices lost about $9-$10 per tonne, with prices ranging from about $201 per tonne in north-central Saskatchewan to $220 per tonne in Manitoba, according to bids from a cross-section of delivery points across Western Canada.

Basis levels varied from location to location, with only small adjustments to the averages if the currency exchange rates between the U.S. dollar denominated futures and Canadian dollar bids were ignored.

When accounting for the currency by adjusting Canadian prices to U.S. dollars (C$1=US79.71 cents as of Monday), CWRS bids ranged from US$160 to $175, which would put the currency adjusted basis levels relatively unchanged on the week at US$34 to $49 below the futures.

Looking at it the other way around, if Minneapolis futures are converted to Canadian dollars CWRS basis levels across Western Canada range from C$42 to $61 below the futures.

Average Canada Prairie Spring Red (CPSR) bids were down by C$10 to $15 per tonne during the week. CPRS prices came in at about $165 in Manitoba, at about $170 per tonne in Saskatchewan, and $178-$182 in Alberta.

Soft white spring (CWSWS) wheat prices were down by about $9 per tonne, ranging from $191 to $184 per tonne in Alberta. Winter wheat prices were down by $9-$13 per tonne, ranging from $151 to $158 per tonne across Western Canada.

Durum prices were also lower, with prices in southern Saskatchewan, where the bulk of the crop is grown, down $5 at $337 per tonne.

The May spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.67 per bushel on Friday, down 18 cents from the previous week.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The May K.C. wheat contract was quoted at US$5.3825 per bushel on Friday, down 25.5 cents from last week.

The May Chicago Board of Trade (CBOT) soft wheat contract settled at US$5.07 on Friday, which was 22.25 cents lower compared to the week prior.

The Canadian dollar finished the week at US79.71 cents, down by roughly 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. 23, 2015. Futures prices are in U.S. dollars per tonne and vary slightly due to changes while data is collected. Cash bids are in Canadian dollars per tonne, with the currency conversion included in the basis. Source: AGCanada.com.

CWRS Future Basis Net
Manitoba 209.24 10.69 219.93
Sask North Central 208.12 -6.53 201.59
Sask South 208.35 2.79 211.14
Alberta South 208.67 1.12 209.79
Alberta Central 208.80 -2.58 206.22
Peace 208.84 -0.59 208.24
CPSR Future Basis Net
Manitoba 198.67 -33.17 165.50
Sask North Central 197.30 -27.40 169.89
Sask South 194.62 -24.03 170.59
Alberta South 197.39 -17.17 180.23
Alberta Central 197.72 -15.01 182.71
Peace 197.96 -19.58 178.37
CWSWS Future Basis Net
Alberta South 187.09 -6.08 181.01
Alberta Central 187.12 -3.26 183.86
Peace 187.30 -3.02 184.28
CWRW Future Basis Net
Manitoba 197.33 -39.70 157.63
Sask North Central 197.24 -42.26 154.98
Sask South 197.31 -39.61 157.71
Alberta South 197.39 -45.81 151.58
Alberta Central 197.72 -41.35 156.37
Peace 197.94 -39.94 158.00
CWAD     Net
Sask North Central 349.32
Sask South 337.00
Alberta South 340.31
Alberta Central 364.14

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