Prairie spring wheat bids tick lower

CNS Canada — Cash spring wheat bids across Western Canada were slightly weaker during the week ended Friday, as the Canadian dollar gained ground relative to its U.S. counterpart.

Depending on the location, average Canada Western Red Spring (CWRS) wheat prices were down by roughly $1 to $2.50 per tonne over the course of the week, according to price quotes from a cross-section of delivery points across the Prairie provinces compiled by PDQ (Price and Data Quotes).

Average CWRS prices ranged from about $225 per tonne in southeastern Saskatchewan to as high as $239 in southern Alberta.

Quoted basis levels varied from location to location, ranging from $33 to $47 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 currency exchange rates by adjusting Canadian prices to U.S. dollars, CWRS bids ranged from US$172 to $186 per tonne; which was steady compared to the previous week. That would put the currency adjusted basis levels at about US$6-$17 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 $8 to $22 below the futures.

Average Canada Prairie Spring Red (CPSR) bids were down by about $1-$3 per tonne in most locations. Average CPSR prices came in at about $183-$210 per tonne in Saskatchewan, and $197-$211 per tonne in Alberta.

Average durum prices were down by $1-$3 per tonne during the week, with bids in Saskatchewan ranging from roughly $283-$289 per tonne.

The May spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Friday at US$5.235 per bushel, up US2.5 cents from the previous week.

Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The May K.C. wheat contract was quoted at US$4.5775 per bushel on Friday, down US2.25 cents compared to the previous week.

The May Chicago Board of Trade soft wheat contract settled at US$4.5975 on Friday, down by US0.5 cents on the week.

The Canadian dollar closed Friday at US77.9 cents, up by roughly a cent compared to the previous week.

Dave Sims writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

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