Prairie wheat bids mixed

CNS Canada — Cash wheat bids across Western Canada saw some minor adjustments over the week ended Friday, with the general trend seeing strengthening bids in the eastern Prairies and a softer tone in parts of Alberta.

Average Canada Western Red Spring (CWRS) wheat prices saw only minor revisions on the week, rising by as much as $2 in some locations and falling by up to $3 in others, according to price quotes from a cross-section of delivery points across the Prairie provinces. Bids ranged from C$228 per tonne in Manitoba to as high as C$245 per tonne in southern Alberta.

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Quoted basis levels varied from location to location, but improved by $1 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.

When accounting for the currency exchange rates by adjusting the Canadian prices to U.S. dollars, CWRS bids ranged from US$171 to $184 per tonne. That would put the currency-adjusted basis levels at about US$5-$18 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$7 to $24 below the futures.

Average Canada Prairie Spring Red (CPSR) bids were up by C$1-$4 per tonne. CPSR prices came in at about C$183 per tonne in Manitoba, $191-$193 per tonne in Saskatchewan, and $202-$210 per tonne in Alberta.

Soft white spring (CWSWS) wheat prices were up by C$2 per tonne, ranging from $221 to $222 per tonne in Alberta.

Winter (CWRW) wheat prices were mixed, rising buy as much as C$5 per tonne in Manitoba, but losing $5 in southern Alberta. Prices ranged from roughly $180 to $190 per tonne across the Prairies.

Average durum (CWAD) prices were down C$4-$13 per tonne. Average bids in southern Saskatchewan, where the bulk of the crop is grown, lost $9 per tonne to sit at $295 per tonne.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Friday at US$5.1875 per bushel, down 6.75 cents from the week prior.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The December K.C. wheat contract was quoted at US$4.9025 per bushel on Friday, down 3.5 cents from the week before.

The December Chicago Board of Trade soft wheat contract settled at US$5.2325 on Friday, 1.25 cents stronger compared to the week prior.

The Canadian dollar closed Friday at US75.21 cents, down by over 1.25 cents relative to its U.S. counterpart compared to the previous week.

CLICK HERE for today’s table of average published cash prices for wheat and other crops on the Prairies.

Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting. Follow CNS Canada at @CNSCanada on Twitter.

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

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