Prairie wheat bids weaken slightly, basis improves

CNS Canada –– Wheat cash bids across Western Canada moved slightly lower in most classes during the week ended Friday, amid softness in U.S. futures and improving basis levels.

Average Canada Western Red Spring (CWRS) wheat prices were steady to down about $4 per tonne, with bids ranging from $207 per tonne in north-central Saskatchewan to $227 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 up 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 improved by about C$1 per tonne, to just over $3 above the futures.

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When accounting for the currency exchange rates by adjusting the Canadian prices to US dollars, CWRS bids ranged from US$164 to US$180.

Average Canada Prairie Spring Red (CPSR) bids were down about C$4 to up $1 per tonne compared to the week prior. CPSR prices came in at about $184 in Manitoba, at about $186 to $189 per tonne in Saskatchewan, and $197 to $200 in Alberta. Average basis levels also improved by about $1 per tonne, to $17 below the futures.

Soft white spring (CWSWS) wheat prices were down by about $4-$6 per tonne, ranging from $185 to $189 per tonne in Alberta.

Winter wheat (CWRW) prices were $4 lower to $2 higher, ranging from $163 to $173 per tonne across Western Canada.

Durum prices were lower, mostly. Prices in southern Saskatchewan, where the bulk of the crop is grown, were at about $326 per tonne, $7 higher compared to the week prior. Values in other parts of Alberta and Saskatchewan were down by $5-$10 a tonne.

The May spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.75 per bushel on Friday, down 14.5 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 Friday at US$5.53 per bushel, down 16.5 cents from last week.

The May Chicago Board of Trade (CBOT) soft wheat contract settled Friday at US$5.0775, 22.25 cents softer compared to the week prior.

The Canadian dollar finished the week at US79.37 cents, down about a tenth of a 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 March 30, 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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