Western Canadian wheat bids stay rangebound

(Country Guide file photo)

CNS Canada — Cash wheat bids across Western Canada stayed mainly rangebound during the week ended Monday.

Average Canada Western Red Spring (CWRS) wheat prices were up by C$1 per tonne across the three Prairie provinces, according to price quotes from a cross-section of delivery points. Bids ranged from $228 per tonne in Manitoba to $244 per tonne in southern Alberta.

Quoted basis levels varied from location to location, but were mostly $1 less on average, to sit at $39 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$173 to $185 per tonne. That would put the currency-adjusted basis levels at about US$10-$22 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 (CRSR) bids were mostly down C$1-$2 per tonne. CPSR prices came in at about $185 per tonne in Manitoba, $194-$198 per tonne in Saskatchewan and $210 per tonne in Alberta.

Soft white spring (CWSWS) wheat prices were down C$2-$3 per tonne on average. Prices were roughly $210-$211 per tonne in Alberta.

Winter (CWRW) wheat prices were down by C$3 per tonne; prices were roughly $185-$193 per tonne.

Average durum (CWAD) prices increased by C$1 per tonne. Average bids in southern Saskatchewan, where the bulk of the crop is grown, were up by C$1 to sit at $326 per tonne.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.2725 per bushel on Friday, up 4.5 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$5.005 per bushel, up 0.0025 from the week before.

The December Chicago Board of Trade soft wheat contract settled at US$5.1325 on Friday, 5.5 cents stronger compared to the week prior.

The Canadian dollar closed Friday at US76.02 cents, up by a cent relative to its US counterpart compared to the previous week.

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

Table: The weekly snapshot of average published prices released Oct. 5, 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
Manitoba 194.44 33.41 227.85
Sask North Central 195.70 33.19 228.89
Sask South 194.47 33.42 227.89
Alberta South 194.50 49.27 243.76
Alberta Central 194.66 46.51 241.17
Peace 194.68 43.44 238.12
CPSR Future Basis Net
Manitoba 183.99 1.38 185.37
Sask North Central 185.33 12.42 197.75
Sask South 184.04 10.63 194.68
Alberta South 184.42 26.42 210.84
Alberta Central 184.92 25.67 210.59
Peace 186.00 21.82 207.82
CWSWS Future Basis Net
Alberta South 188.56 23.24 211.80
Alberta Central 188.77 22.81 211.58
Peace 188.65 22.15 210.80
CWRW Future.   . Basis.   . Net
Manitoba 184.00 6.81 190.82
Sask North Central 184.02 1.93 185.95
Sask South 184.04 4.17 188.21
Alberta South 184.42 6.66 191.08
Alberta Central 184.38 8.92 193.30
Peace 184.27 6.76 191.02
CWAD     Net
Sask North Central.    . 323.30
Sask South 326.29
Alberta South 330.22
Alberta Central 327.16

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