Prairie spring wheat bids firm

CNS Canada — Cash spring wheat bids across Western Canada generally saw some improvement during the week ended Friday, as basis levels saw some improvements at many locations.

Average Canada Western Red Spring (CWRS) wheat prices were steady to up by as much as C$3 per tonne during the week, according to price quotes from a cross-section of delivery points across the Prairie provinces.

Bids in Manitoba saw the largest increase, but average prices in the province are still the lowest in the Prairies, at roughly C$227 per tonne. Moving west, average CWRS prices topped out at $230 in Saskatchewan and $244 in Alberta.

Quoted basis levels varied from location to location, but improved by $2 on average to sit at $48 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 the Canadian prices to U.S. dollars, CWRS bids ranged from US$170 to $183 per tonne. That would put the currency adjusted basis levels at about US$4-S$17 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$5 to $23 below the futures.

Average Canada Prairie Spring Red (CPSR) bids were steady to up by as much as C$3 per tonne. Average CPSR prices came in at about $180 per tonne in Manitoba, $190-$191 per tonne in Saskatchewan, and $199-$204 per tonne in Alberta.

Soft white spring (CWSWS) wheat prices were up by C$1 per tonne, ranging from $211 to $213 per tonne in Alberta.

Winter (CWRW) wheat prices mostly lower, losing C$2-$4 per tonne on the week. Prices ranged from roughly $175 to $181 per tonne across the Prairies.

Average durum (CWAD) prices held steady. Bids in southern Saskatchewan, where the bulk of the crop is grown, were unchanged at C$295 per tonne.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Friday at US$5.095 per bushel, down US5.25 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$4.57 per bushel on Friday, down US8.5 cents from the week before.

The December Chicago Board of Trade (CBOT) soft wheat contract settled at US$4.9575 on Friday, which was US7.25 cents weaker compared to the week prior.

The Canadian dollar closed Friday at US74.93 cents, down by about a fifth of a cent relative to its U.S. counterpart compared to the previous week.

CLICK HERE for the weekly table of average published cash prices.

Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

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