Prairie wheat bids up as basis improves

(Country Guide file photo)

CNS Canada — Cash wheat bids across Western Canada moved higher during the week ended Friday, as basis levels showed some improvement at most locations.

Average Canada Western Red Spring (CWRS) wheat prices were up by C$7-$8 per tonne on average across the three Prairie provinces, according to price quotes from a cross-section of delivery points. Bids ranged from $223 per tonne in Manitoba to as high as $239 per tonne in southern Alberta.

To view our weekly table of Prairie futures and cash prices, CLICK HERE.

Quoted basis levels varied from location to location, but improved by $4 on average to sit at $39 above the futures, when using the grain company methodology of quoting the basis as the difference between the 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$169 to $181 per tonne. That would put the currency adjusted basis levels at about US$10 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$13 to $28 below the futures.

Average Canada Prairie Spring Red (CPSR) bids were up by C$7-$9 per tonne. CPSR prices came in at about $179 per tonne in Manitoba, $188-$190 per tonne in Saskatchewan, and $200-$203 per tonne in Alberta.

Soft white spring (CWSWS) wheat prices were up by C$11-$12 per tonne, ranging from $207 to $209 per tonne in Alberta.

Winter (CWRW) wheat prices rose by C$6-$7 per tonne compared to the previous week. Prices ranged from roughly $180 to $187 per tonne across the Prairies.

Average durum (CWAD) prices were down C$5-$11 per tonne. Average bids in southern Saskatchewan, where the bulk of the crop is grown, lost $11 to sit at $311 per tonne.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.08 per bushel on Friday, down 4.25 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 at US$4.755 per bushel on Friday, up 2.25 cents from the week before.

The December Chicago Board of Trade soft wheat contract settled Friday at US$4.905, which was 4.75 cents stronger compared to the week prior.

The Canadian dollar closed Friday at US75.9 cents, down by over 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.

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