Prairie wheat bids fall as U.S. futures drop sharply

CNS Canada –– Cash bids for wheat on the Prairies were weaker during the week ended Friday, as a sharp drop in U.S. wheat futures weighed on prices.

Average Canada Western Red Spring (CWRS) wheat prices were C$1 to $11 per tonne lower, with bids ranging from about $204 per tonne in north-central Saskatchewan to $217 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 were generally narrower compared to the week prior. Average basis improved to about C$11 per tonne above the futures, from $4.50 above last week, if 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$164 to $174. That would put the currency adjusted basis levels at about US$23 to $33 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$28 to $41 below the futures.

Average Canada Prairie Spring Red (CPSR) bids were C$13 to $19 per tonne lower. Average basis widened to about C$23.50 below the futures, from $22 below last week. CPRS prices came in at about $149 in Manitoba, $155-$158 per tonne in Saskatchewan, and $164-$171 in Alberta.

Soft white spring (CWSWS) wheat prices were down by C$7-$10 per tonne, ranging from $169 to $170 per tonne in Alberta.

Winter wheat (CWRW) prices were down by C$12 to $18 across Western Canada, with prices coming in around $161 per tonne in Manitoba. Prices in Saskatchewan ranged from $150 to $153, with Alberta values around $145 to $149 per tonne. Basis levels were holding relatively steady.

Durum prices were C$2-$3 per tonne softer, with prices in southern Saskatchewan, where the bulk of the crop is grown, quoted at $281 per tonne.

The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.3075 per bushel on Friday, down 38 cents from the week prior.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPRS in Canada. The July K.C. wheat contract was quoted at US$4.9875 per bushel on Friday, down 47.75 cents from last week.

The July Chicago Board of Trade soft wheat contract settled Friday at US$4.77, 38.25 cents weaker compared to the week prior.

The Canadian dollar closed at US80.41 cents on Friday, down 88 points relative to its U.S. counterpart compared to the previous week.

Terryn Shiells 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 June 1, 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.   .Basis.   .Net
Manitoba198.5018.53217.03
Sask North Central.   .198.964.83203.79
Sask South197.7611.78209.54
Alberta South195.1115.02210.13
Alberta Central195.6110.00205.61
Peace196.575.60202.17
CPSRFutureBasisNet
Manitoba186.01-37.38148.63
Sask North Central186.65-28.84157.80
Sask South185.05-29.53155.52
Alberta South183.03-12.05170.98
Alberta Central183.31-13.40169.90
Peace184.38-20.12164.26
CWSWSFutureBasisNet
Alberta South175.82-5.82170.00
Alberta Central175.63-6.06169.57
Peace176.65-6.57170.08
CWRWFutureBasisNet
Manitoba186.03-25.43160.60
Sask North Central186.67-36.26150.42
Sask South185.05-31.58153.46
Alberta South183.03-37.28145.75
Alberta Central183.31-35.61147.70
Peace184.38-35.52148.87
CWAD  Net
Sask North Central290.14
Sask South284.17
Alberta South279.26
Alberta Central310.20

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