CNS Canada –– Cash spring wheat bids across Western Canada moved lower during the week ended Friday, as basis levels deteriorated.
Average Canada Western Red Spring (CWRS) wheat prices were down by C$1-$5 per tonne during the week, according to price quotes from a cross-section of delivery points across the Prairie provinces. Average prices ranged from about C$226 per tonne in Manitoba to as high as $239 in central Alberta and the Peace region.
Quoted basis levels varied from location to location, but declined by about C$2 on average to sit at $46 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$162 to $171 per tonne. That would put the currency adjusted basis levels at about US$15 to $24 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$21 to $33 below the futures.
Average Canada Prairie Spring Red (CPSR) bids were down by C$2-$7 per tonne. Average CPRS prices came in at about C$190 per tonne in Manitoba, $200-$201 per tonne in Saskatchewan, and $210-$213 per tonne in Alberta.
Soft white spring wheat prices were down by C$2-$4 per tonne, ranging from $215 to $217 per tonne in Alberta.
Winter wheat prices were down by C$1-$5 per tonne on the week. Prices ranged from roughly $185 to $193 per tonne across the Prairies.
Average durum prices were up, rising by C$1-$2 per tonne. Bids in southern Saskatchewan, where the bulk of the crop is grown, were up by $2, at $296 per tonne.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.0625 per bushel on Friday, down US1.5 cents from the week prior.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The March K.C. wheat contract was quoted at US$4.8225 per bushel on Friday, down US0.25 cents from the week before.
The March Chicago Board of Trade soft wheat contract settled at US$4.8675 on Friday, US3.75 cents weaker compared to the week prior.
The Canadian dollar closed at US71.71 cents on Friday, which was down by about half a cent relative to its U.S. counterpart compared to the previous week.
CLICK HERE to review our weekly list of Prairie crop futures and cash prices for wheat, durum, barley and canola.
— Phil Franz-Warkentin writes for Commodity News Services Canada, a Winnipeg company specializing in grain and commodity market reporting.
