Wheat bids edge lower across Prairies

CNS Canada — Cash bids for Canadian wheat were down during the week ended Friday, as values reacted to adjustments in the U.S. futures and the foreign exchange markets.

Average Canada Western Red Spring (CWRS) wheat prices were down by C$3 to $5 per tonne, with bids ranging from $181 per tonne in north-central Saskatchewan to $206 per tonne in Manitoba, according to price quotes from a cross-section of delivery points across Western Canada.

Quoted basis levels varied from location to location, but generally deteriorated by $1 to $2 per tonne if using the grain company methodology of quoting the basis as the difference between U.S. dollar-denominated futures and Canadian dollar cash bids.

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When accounting for the currency exchange rates by adjusting the Canadian prices to U.S. dollars, CWRS bids ranged from US$149 to $169. That would put the currency adjusted basis levels at about US$28 to $49 below the futures, which was unchanged on the week.

Looking at it the other way around, if Minneapolis futures are converted to Canadian dollars, CWRS basis levels across Western Canada range from C$34 to $58 below the futures.

Average Canada Prairie Spring Red (CPSR) bids were down by C$5 to $7 per tonne compared to the week prior. CPSR prices came in at about $140 in Manitoba, at about $143 to $144 per tonne in Saskatchewan, and $154 to $159 in Alberta.

Soft white spring wheat prices were down by about C$4 to $6 per tonne, ranging from $160 to $163 per tonne in Alberta. Winter wheat prices were $5 to $7 per tonne lower, ranging from $139 to $153 per tonne across Western Canada.

Durum prices were unchanged, with prices in southern Saskatchewan, where the bulk of the crop is grown, quoted at about $293 per tonne.

The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.4525 per bushel on Friday, up one cent from the previous week.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The July K.C. wheat contract was quoted at US$5.075 per bushel on Friday, down 7.25 cents from last week.

The July Chicago Board of Trade soft wheat contract settled Friday at US$4.885, which was 0.75 cents weaker compared to the week prior.

The Canadian dollar finished the week at US82.17 cents, up 4/10ths of 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.

Table: The weekly snapshot of average published prices for April 27, 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.

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