Prairie wheat bids firm amid widening basis levels

CNS Canada — Cash bids for Canadian wheat were mostly firmer during the week ended Friday. Strengthening U.S. futures were supportive, though basis levels widened in many regions.

Prices are as of April 2, due to market closures on Good Friday. Average Canada Western Red Spring (CWRS) wheat prices were down 50 cents to up $4.50 per tonne, with bids ranging from $211 per tonne in north-central Saskatchewan to $229 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 were down slightly if using the grain company methodology of quoting the basis as the difference between the U.S. dollar-denominated futures and the Canadian dollar cash bids. Average basis levels for CWRS declined by about C$1 per tonne to just under C$2 below the futures.

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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$168 to $182.

Average Canada Prairie Spring Red (CPSR) bids were down about $2 to up $6 per tonne compared to the week prior. CPSR prices came in at about $184 in Manitoba, at about $186-$187 per tonne in Saskatchewan, and $197.00-$204 in Alberta. Average basis levels for CPSR widened out by $2 per tonne to just over $19 below the futures.

Soft white spring (CWSWS) wheat prices were up by about $2.50-$8 per tonne, ranging from $191 to $193 per tonne in Alberta. Winter wheat prices were 50 cents to $5.50 higher, ranging from $169 to $175 per tonne across Western Canada.

Durum (CWAD) prices were mostly lower, though prices in southern Saskatchewan, where the bulk of the crop is grown, were up $5, to about $324 per tonne. Values in other parts of Alberta and Saskatchewan were down by $9-$12 a tonne.

The May spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.955 per bushel on Thursday, up 20.5 cents from the previous week.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The May K.C. wheat contract was quoted at US$5.8275 per bushel on Thursday, up 29.75 cents from last week.

The May Chicago Board of Trade soft wheat contract settled at US$5.3625 on Thursday, 28.5 cents stronger compared to the week prior.

The Canadian dollar finished the week at US79.59 cents,up almost a quarter-cent relative to its U.S. counterpart compared to the previous week.

— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

Table: The weekly snapshot of average published prices as of April 6, 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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