Cash wheat market up slightly with U.S. futures

(Country Guide file photo)

CNS Canada — Cash bids for Prairie wheat were steady to slightly higher during the week ended Friday, finding support from strength in U.S. wheat futures markets.

Average Canada Western Red Spring (CWRS) wheat prices were steady to C$3.50 per tonne higher, with bids ranging from about $186 per tonne in north-central Saskatchewan to $204 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, with some widening out and others showing slight improvement. Average basis weakened slightly to about C$4.50 per tonne below the futures, 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.

When accounting for the currency exchange rates by adjusting the Canadian prices to U.S. dollars, CWRS bids ranged from US$154 to $169. That would put the currency adjusted basis levels at about US$28 to $43 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$34 to $52 below the futures.

Average Canada Prairie Spring Red (CPSR) bids were steady to C$2 per tonne higher. Average basis widened by about $2 per tonne during the week, to C$30 below the futures. CPRS prices came in at about C$144 in Manitoba, at about $151-$152 per tonne in Saskatchewan, and $160-$163 in Alberta.

Soft white spring (CWSWS) wheat prices were down up by C$2.50-$5 per tonne, ranging from $161 to $162 per tonne in Alberta.

Winter wheat (CWRW) prices were steady to $2 higher in Manitoba, Saskatchewan and Alberta. Prices ranged from C$143 to $149 across Western Canada.

Durum (CWAD) prices were steady to $4 per tonne lower, with prices in southern Saskatchewan, where the bulk of the crop is grown, quoted at about $284 per tonne.

The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.41 per bushel on Friday, up 6.5 cents from the week prior.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The July K.C. wheat contract was quoted Friday at US$5.085 per bushel, up eight cents from last week.

The July CBOT (Chicago Board of Trade) soft wheat contract settled Friday at US$4.815, 7.5 cents firmer compared to the week prior.

The Canadian dollar finished the week at US82.71 cents, up 45 points 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 May 11, 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.

CWRS Future.    . Basis.   . Net
Manitoba 196.61 7.09 203.71
Sask North Central.   . 196.68 -11.20 185.48
Sask South 196.55 -4.37 192.18
Alberta South 197.15 1.86 199.01
Alberta Central 197.25 -9.13 188.12
Peace 197.01 -10.80 186.21
CPSR Future Basis Net
Manitoba 185.13 -40.88 144.25
Sask North Central 185.92 -33.89 152.03
Sask South 185.07 -34.25 150.82
Alberta South 185.66 -23.73 161.94
Alberta Central 185.67 -22.82 162.84
Peace 185.58 -25.19 160.39
CWSWS Future Basis Net
Alberta South 176.74 -15.61 161.13
Alberta Central 176.33 -14.71 161.62
Peace 176.00 -14.93 161.07
CWRW Future Basis Net
Manitoba 185.13 -35.78 149.35
Sask North Central 185.92 -42.91 143.01
Sask South 185.07 -38.84 146.23
Alberta South 185.66 -42.70 142.96
Alberta Central 185.65 -39.74 145.91
Peace 185.58 -39.59 145.98
CWAD     Net
Sask North Central 290.07
Sask South 283.93
Alberta South 278.71
Alberta Central 310.20

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