CNS Canada — Cash spring wheat bids across Western Canada moved lower during the two-week holiday period ending Thursday (Dec. 31), as the U.S. futures also drifted lower during that time frame.
Average Canada Western Red Spring (CWRS) wheat prices were down by C$7-$8 per tonne during the two-week period, according to price quotes from a cross-section of delivery points across the Prairie provinces compiled by PDQ. Average prices ranged from about $219 per tonne in southeastern Saskatchewan to as high as $237 in southern Alberta.
Quoted basis levels varied from location to location, but were generally sitting at $38-$56 per tonne 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.
When accounting for the currency exchange rates by adjusting the Canadian prices to U.S. dollars, CWRS bids ranged from US$158 to $171 per tonne. That would put the currency adjusted basis levels at about US$10-$23 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$14 to $32 below the futures.
Average Canada Prairie Spring Red (CPSR) bids were down by C$9-$10 per tonne. Average CPSR prices came in at about $186 per tonne in Manitoba, C$186 to C$199 per tonne in Saskatchewan, and $198 to $205 per tonne in Alberta.
Average durum prices were up by C$9-$10 per tonne. Bids in southern Saskatchewan, where the bulk of the crop is grown, were up by $9 at roughly $312 per tonne, according to PDQ data.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$4.9325 per bushel on Thursday, down US13 cents from the close two weeks earlier on Dec. 18.
Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The March K.C. wheat contract was quoted Thursday at US$4.685 per bushel, down US13.75 cents over the two-week period.
The March Chicago Board of Trade soft wheat contract settled Thursday at US$4.70, US16.75 cents weaker compared to two weeks prior.
The Canadian dollar closed Thursday at US72.25 cents, up by about half a cent relative to its U.S. counterpart compared to Dec. 18.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.