Cash wheat prices move lower across Prairies

CNS Canada –– Cash wheat bids across Western Canada edged lower during the week ended Friday, as basis levels held relatively steady and the continued slide in U.S. futures weighed on values.

Average Canada Western Red Spring (CWRS) wheat prices were down by roughly C$2 per tonne across the three Prairie provinces, according to price quotes from a cross-section of delivery points. Bids ranged from about $207 per tonne in north-central Saskatchewan to as high as $222 per tonne in southern Alberta.

Quoted basis levels varied from location to location, but held steady overall at an average of about $31 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$157 to $168 per tonne. That would put the currency-adjusted basis levels at about US$16 to $27 below the futures.

Looking at it the other way around, if Minneapolis futures are converted to Canadian dollars, CWRS basis levels across Western Canada range from C$21 to $36 below the futures.

Average Canada Prairie Spring Red (CPSR) bids were down by C$4-$5 per tonne. CPSR prices came in at about $172 per tonne in Manitoba, $182 per tonne in Saskatchewan and $192-$196 per tonne in Alberta.

Soft white spring (CWSWS) wheat prices did show some strength during the week, rising C$4 per tonne on average. Prices ranged from $194 to $195 per tonne in Alberta.

Winter (CWRW) wheat prices were down by C$3-$9 per tonne. Prices ranged from about C$171 to $177 per tonne, with the best levels in Alberta.

Durum (CWAD) prices were steady to as much as C$6 per tonne higher, with average bids in southern Saskatchewan unchanged at $323 per tonne.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.1025 per bushel on Thursday, down 11.25 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 Thursday at US$4.6775 per bushel, down 15.75 cents from last week.

The December Chicago Board of Trade (CBOT) soft wheat contract settled Thursday at US$4.6525, 18.5 cents weaker compared to the week prior.

The Canadian dollar closed at US75.79 cents on Thursday, up about 0.1 cent relative to its U.S. counterpart compared to the previous week.

Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting. Follow CNS Canada at @CNSCanada on Twitter.

Table: The weekly snapshot of average published prices for Sept. 4, 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.

CWRSFuture.  .BasisNet
Manitoba183.9231.72 215.64
Sask North Central.  .184.6323.05207.68
Sask South183.8125.10208.91
Alberta South183.8138.59222.40
Alberta Central183.8934.61218.50
Peace184.1032.76216.86
CPSRFutureBasis.  .Net
Manitoba171.870.62172.49
Sask North Central171.8710.91182.78
Sask South171.879.71181.58
Alberta South171.8724.17196.04
Alberta Central171.8723.77195.64
Peace171.8720.14192.01
CWSWSFutureBasisNet
Alberta South170.9524.15195.10
Alberta Central170.9523.68194.63
Peace170.9523.08194.03
CWRWFutureBasisNet
Manitoba171.874.36176.23
Sask North Central171.87-0.15171.72
Sask South171.871.66173.53
Alberta South171.874.32176.19
Alberta Central171.874.82176.69
Peace171.874.47176.34
CWAD  Net
Sask North Central319.06
Sask South323.87
Alberta South322.29
Alberta Central331.01

About the author

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Phil Franz-Warkentin writes for MarketsFarm specializing in grain and commodity market reporting.

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