Prairie wheat bids stay rangebound

CNS Canada — Cash wheat bids across Western Canada were relatively unchanged for the week ended Friday, eking out minimal gains, as U.S. futures stabilized and basis levels followed suit.

Average Canada Western Red Spring (CWRS) wheat prices were up to $1 higher across the three Prairie provinces, according to price quotes from a cross-section of delivery points. Bids ranged from about C$227 per tonne in Manitoba to as high as $243 per tonne in southern Alberta.

Quoted basis levels varied from location to location, but held steady overall to sit at $45 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$170 to $182 per tonne. That would put the currency adjusted basis levels at about US$6-$8 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$8 to C$24 below the futures.

Average Canada Prairie Spring red (CPSR) bids were up slightly. CPSR prices came in at about C$181 per tonne in Manitoba, $191 per tonne in Saskatchewan, and $200-$204 per tonne in Alberta.

Soft white spring (CWSWS) wheat prices were down by roughly C$9 per tonne on average. Prices were at $204 per tonne in Alberta.

Winter (CWRW) wheat prices were relatively the same. Prices were approximately C$175-$181 per tonne across all three provinces.

Average durum (CWAD) prices were unchanged with average prices in southern Saskatchewan holding steady at C$295 per tonne.

The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Friday at US$5.065 per bushel, down 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 March K.C. wheat contract was quoted at US$4.655 per bushel Friday, down four cents from the week prior.

The March Chicago Board of Trade soft wheat contract settled Friday at US$4.79, down 11 cents compared to the week prior.

The Canadian dollar closed at US74.78 cents on Friday, down 0.15 cent relative to its U.S. counterpart compared to the previous week.

CLICK HERE to view AGCanada.com’s weekly snapshot of average published cash prices.

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

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