CNS Canada –– Cash wheat bids across Western Canada posted solid gains during the week ended Friday, as advances in U.S. futures and improving basis levels provided support.
Average Canada Western Red Spring (CWRS) wheat prices were up by C$6-$7 per tonne across the three Prairie provinces, according to price quotes from a cross-section of delivery points. Bids ranged from about $228 per tonne in Saskatchewan and Manitoba, to as high as $242 per tonne in southern Alberta.
Quoted basis levels varied from location to location, but improved by C$2 on average to sit at $40 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$171 to $182 per tonne. That would put the currency adjusted basis levels at about US$12-$23 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$16 to $30 below the futures.
Average Canada Prairie Spring Red (CPSR) bids were up by C$7-$9 per tonne. CPSR prices came in at about $188 per tonne in Manitoba, $199 in Saskatchewan and $210-$213 in Alberta.
Soft white spring (CWSWS) wheat prices were up by C$12 per tonne on average. Prices ranged from $213 to $214 per tonne in Alberta.
Winter (CWRW) wheat prices were up by C$7-$10 per tonne. Prices ranged from about $188 to $195 per tonne, with the best levels in Alberta.
Average durum (CWAD) prices increased by C$5-$9 per tonne. Average bids in southern Saskatchewan, where the bulk of the crop is grown, were up $5 at $321 per tonne.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.2275 per bushel on Friday, up 11.75 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$5.0025 per bushel, up 18 cents from last week.
The December Chicago Board of Trade soft wheat contract settled at US$5.0775 on Friday, 21 cents stronger compared to the week prior.
The Canadian dollar closed at US75.1 cents on Friday, down by about half a cent relative to its U.S. counterpart compared to the previous week.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting. Follow CNS Canada at @CNSCanada on Twitter.
Table: The weekly snapshot of average published prices for Sept. 28, 2015. Futures prices (US$ per tonne) vary slightly due to changes while data is collected. Cash bids (C$ per tonne) have currency conversion included in the basis. Source: AGCanada.com.
|CWRS||Future. .||Basis. .||Net|
|Sask North Central||194.01||33.84||227.84|
|Sask North Central||185.04||13.68||198.72|
|Sask North Central||184.40||3.28||187.68|
|Sask North Central. .||322.93|