Prairie wheat bids ebb lower

(Country Guide file photo)

CNS Canada –– Cash wheat bids across Western Canada ebbed lower during the week ended Friday, as U.S. futures dipped and basis levels fluctuated.

Average Canada Western Red Spring (CWRS) wheat prices were down by C$2 to $5 per tonne across the three Prairie provinces, according to price quotes from a cross-section of delivery points. Bids ranged from about $223 per tonne in Manitoba to as high as $243 per tonne in southern Alberta.

Quoted basis levels varied from location to location, but held steady overall to sit at $46 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$167 to $182 per tonne. That would put the currency adjusted basis levels at about US$6 to $21 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$8 to $28 below the futures.

Average Canada Prairie Spring Red (CPSR) bids were down C$3 to $6 per tonne. CPSR prices came in at about $177 per tonne in Manitoba, $188 per tonne in Saskatchewan and $199-$204 per tonne in Alberta.

Soft white spring (CWSWS) wheat prices were down by roughly C$10 per tonne on average. Prices were at $212 per tonne in Alberta.

Winter (CWRW) wheat prices were down by C$3-$6 per tonne. Prices were approximately $181 per tonne across all three provinces.

Average durum (CWAD) prices were unchanged, with average prices in southern Saskatchewan holding steady at C$295 per tonne.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.0425 per bushel on Friday, down 14.5 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$4.655 per bushel, down 24.75 cents from the week prior.

The December Chicago Board of Trade soft wheat contract settled at US$4.9575 on Friday, down 27.5 cents compared to the week prior.

The Canadian dollar closed Friday at US75.09 cents, down about a tenth of a cent relative to its U.S. counterpart compared to the previous week.

CLICK HERE to view the average Prairie cash grain prices and futures values for the week ending Monday.

Dave Sims writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

About the author

Glacier FarmMedia Feed

GFM Network News

Glacier FarmMedia, a division of Glacier Media, is Canada's largest publisher of agricultural news in print and online.

Comments

explore

Stories from our other publications