Prairie wheat bids drop with U.S. futures

CNS Canada –– Cash bids for Canadian wheat were down during the week ended Friday, as losses in U.S. futures weighed on values.

Average Canada Western Red Spring (CWRS) wheat prices were down by C$8-10 per tonne, with bids ranging from $200 per tonne in north-central Saskatchewan to $219 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, but held relatively steady 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.

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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$159 to $174. That would put the currency adjusted basis levels at about US$34 to $49 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$43 to $61 below the futures.

Average Canada Prairie Spring Red (CPSR) bids were down by C$17-$19 per tonne compared to the week prior. CPRS prices came in at about C$166 in Manitoba, $168-$169 per tonne in Saskatchewan, and $179-$185 in Alberta.

Soft white spring (CWSWS) wheat prices were down by about C$10-$11 per tonne, ranging from $181 to $182 per tonne in Alberta. Winter wheat (CWRW) prices were C$11-$19 per tonne lower, ranging from $151 to $164 per tonne across Western Canada.

Durum (CWAD) prices were down by anywhere from C$5 to $22 per tonne, with prices in southern Saskatchewan, where the bulk of the crop is grown, quoted at about $303 per tonne.

The May spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Friday at US$5.81 per bushel, down 14.5 cents from the previous week.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The May K.C. wheat contract was quoted at US$5.5875 per bushel on Friday, down 24 cents from last week.

The May Chicago Board of Trade soft wheat contract settled Friday at US$5.265, 9.75 cents weaker compared to the week prior.

The Canadian dollar finished the week at US79.49 cents, down by a 10th of a 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.

Table: The weekly snapshot of average published prices as of April 13, 2015. Futures prices (US$ per tonne) vary slightly due to changes while data is collected. For cash bids (C$ per tonne), currency conversion is included in the basis. Source: AGCanada.com.

CWRSFuture…Basis…Net
Manitoba208.2411.69219.93
Sask North Central…207.97-7.63200.34
Sask South208.971.25210.22
Alberta South208.027.12215.14
Alberta Central209.120.79209.91
Peace207.63-1.32206.31
CPSRFutureBasisNet
Manitoba195.99-30.06165.93
Sask North Central195.68-27.42168.25
Sask South197.22-27.34169.88
Alberta South197.83-11.87185.97
Alberta Central196.71-11.50185.22
Peace196.43-16.90179.53
CWSWSFutureBasisNet
Alberta South188.00-5.51182.49
Alberta Central186.95-4.84182.11
Peace186.93-5.35181.58
CWRWFutureBasisNet
Manitoba195.99-31.43164.56
Sask North Central195.28-37.26158.02
Sask South196.59-35.25161.34
Alberta South197.83-46.91150.93
Alberta Central196.71-43.65153.06
Peace196.43-42.77153.66
CWAD  Net
Sask North Central304.79
Sask South302.81
Alberta South310.85
Alberta Central312.20

About the author

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

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