Prairie cash wheat: Depending on variety, bids a mixed bag

MarketsFarm — Wheat bids in Western Canada varied for the week ended Thursday. Canada Western Red Spring (CWRS) wheat was mixed, while Canada Prairie Spring Red (CPSR) was stronger, and durum (CWAD) steady to slightly higher.

The Canadian dollar lost about a half cent during the week.

Average CWRS (13.5 per cent protein) wheat prices ranged from down $3 to up $2 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $223 per tonne in eastern Saskatchewan and western Manitoba, to as high as $247 per tonne in southern Alberta.

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Quoted basis levels varied from location to location and ranged from $26 to $45 per tonne 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 currency exchange rates by adjusting Canadian prices to U.S. dollars, CWRS bids ranged from US$174 to US$189 per tonne. That would put the currency-adjusted basis levels at about US$13-$27 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 $10 to $21 below the futures.

Wheat bids for CPSR were up by $2 per tonne. Prices ranged from $202 per tonne in southeastern Saskatchewan to $226 per tonne in southern Alberta.

Average durum prices were steady to higher by up to $1, with bids ranging from $264 per tonne in western Saskatchewan to $281 per tonne in western Manitoba.

The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$5.52 per bushel, down 6.25 cents from the previous week.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The March K.C. wheat contract was quoted Thursday at US$4.9025 per bushel, up five U.S. cents compared to the previous week.

The March Chicago Board of Trade soft wheat contract settled at US$5.6225 per bushel on Thursday, down two U.S. cents on the week.

The Canadian dollar closed Thursday at 76.46 U.S. cents, down 0.51 of a cent from the previous week.

— Glen Hallick reports for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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