CNS Canada –– Cash bids for Canadian wheat were stronger during the week ended Friday, as basis levels improved. A firmer tone in U.S. wheat futures was also supportive.
Average Canada Western Red Spring (CWRS) wheat prices were C$6-$12 per tonne higher, with bids ranging from about $204 per tonne in north-central Saskatchewan to $223 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$4.50 per tonne above the futures, from $3.25 below last week, 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.
When accounting for the currency exchange rates by adjusting the Canadian prices to U.S. dollars, CWRS bids ranged from US$166-$181. That would put the currency adjusted basis levels at about US$27-$42 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$33 to $52 below the futures.
Average Canada Prairie Spring Red (CPSR) bids were C$5-$13 per tonne higher. Average basis improved to about C$22 below the futures, from $29 below last week. CPRS prices came in at about $167 in Manitoba, $171-$172 per tonne in Saskatchewan, and $180-$190 in Alberta.
Soft white spring (CWSWS) wheat prices were up by C$4-$6 per tonne, ranging from $177 to $180 per tonne in Alberta.
Winter (CWRW) wheat prices were up C$4-$8 in Manitoba and Saskatchewan, with prices coming in around $162-$174. Prices for winter wheat in Alberta were up sharply, with gains of $25-$30 per tonne, as basis levels in the region narrowed significantly. Values were in the $163-$165 per tonne range in Alberta.
Durum (CWAD) prices were steady to C$8 per tonne higher, with prices in southern Saskatchewan, where the bulk of the crop is grown, quoted at $284 per tonne.
The July spring wheat contract in Minneapolis (MGEX), off of which most CWRS contracts in Canada are based, was quoted at US$5.6875 per bushel on Friday, up 2.25 cents from the week prior.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The July K.C. wheat contract was quoted Friday at US$5.465 per bushel, up 3.25 cents from last week.
The July Chicago Board of Trade (CBOT) soft wheat contract settled at US$5.1525 on Friday, one cent stronger compared to the week prior.
The Canadian dollar closed Friday at US81.29 cents, down more than two full cents relative to its U.S. counterpart compared to the previous week.
— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.
Table: The weekly snapshot of average published prices as of May 25, 2015. Futures prices (US$ 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.
|CWRS||Future. .||Basis. .||Net|
|Sask North Central. .||208.64||-4.18||204.47|
|Sask North Central||200.25||-29.04||171.21|
|Sask North Central||200.15||-37.68||162.47|
|Sask North Central||290.14|