Prairie CWRS bids mixed as basis adjustments vary

CNS Canada — Cash bids for Canadian wheat were mixed during the week ended Friday, due to basis adjustments that varied from location, to location.

Average Canada Western Red Spring (CWRS) wheat prices were C$2.50 per tonne lower to $4 higher, with bids ranging from $185 per tonne in north-central Saskatchewan to $203 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, with some widening out and others showing improvement. Average basis improved by about $2 per tonne, to $4 per tonne below the futures, 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 Canadian prices to U.S. dollars, CWRS bids ranged from US$152 to $167.

Average Canada Prairie Spring Red (CPSR) bids were up by C$3 to $7.50 per tonne compared to the week prior, despite softening U.S. futures prices. Average basis improved by C$7 per tonne during the week, to $28.25 below the futures, which supported values.

CPSR prices came in at about C$144.50 in Manitoba, at about $149.50-$151 per tonne in Saskatchewan, and $159.50-$162.25 in Alberta.

Soft white spring (CWSWS) wheat prices were down by C$4.25-$5 per tonne, ranging from $156 to $159 per tonne in Alberta.

Winter wheat (CWRW) prices were C$1.50 to $6 lower in Manitoba and Saskatchewan, ranging from $140.75 to $149. In Alberta, improving basis levels caused prices to move $2 to $2.50 per tonne higher, ranging from $141 to $144.50 per tonne.

Durum (CWAD) prices were C$2-$12 per tonne lower, with prices in southern Saskatchewan, where the bulk of the crop is grown, quoted at about $288.25 per tonne.

The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Friday at US$5.345 per bushel, down 10.75 cents from the week prior.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The July K.C. wheat contract was quoted at US$5.005 per bushel on Friday, down seven cents from last week.

The July Chicago Board of Trade soft wheat contract settled Friday at US$4.74, 14.5 cents weaker compared to the week prior.

The Canadian dollar finished the week at US82.26 cents, up by about a tenth of a cent 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 for May 4, 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.

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