Prairie spring wheat bids move higher

CNS Canada –– Cash spring wheat bids across Western Canada moved higher during the week ended Friday, as U.S. futures also rose during that timeframe.

Average Canada Western Red Spring (CWRS) wheat prices were up by C$9-$10 per tonne during the period, according to price quotes from a cross-section of delivery points across the Prairie provinces compiled by PDQ. Average prices ranged from about $226 per tonne in southeastern Saskatchewan to as high as $243 in northern Alberta.

Quoted basis levels varied from location to location, but were generally sitting at C$14 to $30 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.

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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$158 to $171 per tonne. That would put the currency-adjusted basis levels at about US$10-$23 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$14 to $32 below the futures.

Average Canada Prairie Spring Red (CPSR) bids were roughly the same as the previous week. Average CPSR prices came in at about C$186 per tonne in Manitoba, C$188-$192 per tonne in Saskatchewan, and C$203-$206 per tonne in Alberta.

Average durum prices were up by C$7-$8 per tonne. Bids in southern Saskatchewan, where the bulk of the crop is grown, were up by $4 at roughly $316 per tonne, according to PDQ data.

The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Friday at US$5.01 per bushel, up eight U.S. cents from the close on Dec. 30.

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 at US$4.7275 per bushel on Friday, up US7.25 cents over the week.

The March Chicago Board of Trade soft wheat contract settled Friday at US$4.785, 8.75 cents stronger compared to the week prior.

The Canadian dollar closed at US70.68 cents on Friday, down by about 1-1/3 cents relative to its U.S. counterpart compared to Dec. 30.

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

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