Prairie spring wheat bids rise with U.S. futures

(Country Guide file photo)

CNS Canada –– Average cash bids for Canada Western Red Spring (CWRS) wheat moved higher during the week ended Friday, as strengthening U.S. futures provided support.

In Manitoba, the average CWRS price rose to $234 per tonne, from $223 the previous week. Similar gains were noted across the rest of the Prairies, with average prices in Alberta and Saskatchewan moving up by about $8 to $13 per tonne.

The biggest gains came in the Peace River region of Alberta, where bids were now averaging $213 per tonne. However, the area was still home to the cheapest wheat in Western Canada, with average north-central Saskatchewan CWRS bids now topping out at $219 per tonne and prices of $226 to $227 seen across the rest of Saskatchewan and Alberta.

Basis levels for CWRS weakened slightly in most areas, although only the Peace was reporting average basis levels below the futures.

Average CPSR (Canada Prairie Spring Red) bids were up by about $18-$20 per tonne across the Prairies, with prices at around $162 per tonne in Manitoba, $165-$168 per tonne in Saskatchewan and $170-$177 in Alberta.

Soft white spring (CWSWS) wheat prices were up by roughly $20 per tonne on the week, ranging from $171 to $173 per tonne in Alberta. Winter wheat prices rose by $12-$15, depending on the location, with average values ranging from $147 to $157 per tonne across Western Canada.

Durum (CWAD) prices had posted large gains in recent weeks, but held relatively steady during the past reporting period. Spot durum prices in southern Saskatchewan, where the bulk of the crop is grown, lost about $3 on average to trade at roughly $355 per tonne.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.8925 per bushel on Friday, up 43 cents from the previous week.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The December KC wheat contract was quoted Friday at US$6.055 per bushel, up 36.25 cents from the week prior.

The December Chicago Board of Trade soft wheat contract settled Friday at US$5.605, up 46 cents from the previous week.

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

Table: Weekly snapshot of average published prices as of Nov. 14, 2014. Futures vary slightly due to changes while data is collected. Prices in C$ per tonne. Source: AGCanada.com.

CWRS Future Basis Net
Manitoba 216.61 17.03 233.64
Sask North Central 217.02 1.94 218.96
Sask South 216.84 9.71 226.55
Alberta South 217.98 9.22 227.20
Alberta Central 217.96 9.51 227.47
Peace 217.58 -4.14 213.44
CPSR Future Basis Net
Manitoba 221.57 -58.93 162.64
Sask North Central 220.88 -55.45 165.43
Sask South 220.84 -52.31 168.53
Alberta South 222.21 -46.77 175.44
Alberta Central 222.63 -45.39 177.23
Peace 222.74 -52.09 170.65
CWSWS Future Basis Net
Alberta South 205.76 -34.42 171.34
Alberta Central 205.76 -32.67 173.10
Peace 205.67 -34.20 171.47
CWRW Future Basis Net
Manitoba 221.14 -63.85 157.29
Sask North Central 220.70 -70.67 150.03
Sask South 220.60 -64.99 155.62
Alberta South 222.21 -75.15 147.06
Alberta Central 221.21 -70.38 150.82
Peace 222.74 -71.40 151.35
CWAD     Net
Sask North Central 365.11
Sask South 355.16
Alberta South 372.39
Alberta Central 370.88

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