Prairie wheat bids mostly higher with U.S. futures

(Country Guide file photo)

CNS Canada — Cash bids for western Canadian wheat were mostly higher during the week ended Friday, with gains in U.S. futures providing some support.

Average Canada Western Red Spring (CWRS) wheat prices were anywhere from C$2 per tonne lower to as much as $10 per tonne higher, with bids ranging from about $231 per tonne in Peace River, Alta. to as high as $249 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 generally improved by about C$4 per tonne, to average about C$13 above the futures when using the grain company methodology of quoting the basis as the difference between the U.S. dollar-denominated futures and Canadian dollar cash bids.

When accounting for currency exchange rates by adjusting the Canadian prices to U.S. dollars, CWRS bids ranged from US$183 to $198 per tonne. That would put the currency adjusted basis levels at about US$28 to $43 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$35 to $54 below the futures.

Average Canada Prairie Spring Red (CPSR) bids were C$8 to $13 per tonne higher. CPRS prices came in at about $188 per tonne in Manitoba, $197 per tonne in Saskatchewan, and $202 to $210 per tonne in Alberta.

Soft white spring (CWSWS) wheat prices were up by C$7 per tonne, ranging from $217 to $218 per tonne in Alberta.

Winter (CWRW) wheat prices were C$9-$15 per tonne higher across Western Canada, with prices ranging from $187 to $202 per tonne.

Durum prices were up by C$2 to as much as $13 per tonne. Bids in southern Saskatchewan, where the bulk of the crop is grown, were up by $6 at $290 per tonne.

The September spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$6.245 per bushel on Friday, up 15.25 cents from the week prior.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The September K.C. wheat contract was quoted Friday at US$5.9175 per bushel, up 22.75 cents from last week.

The September Chicago Board of Trade (CBOT) soft wheat contract settled at US$5.905 on Friday, 22.50 cents stronger compared to the week prior.

The Canadian dollar closed at US79.62 cents on Friday, down one and a half cents relative to its U.S. counterpart compared to the previous week.

Phil Franz-Warkentin 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 July 6, 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
Manitoba 227.31 21.81 249.12
Sask North Central.   . 229.25 6.00 235.24
Sask South 227.72 13.34 241.05
Alberta South 222.21 17.78 239.99
Alberta Central 223.34 11.82 235.15
Peace 222.58 8.73 231.31
CPSR Future Basis Net
Manitoba 215.67 -26.83 188.83
Sask North Central 216.73 -18.61 198.12
Sask South 215.59 -18.73 196.86
Alberta South 211.69 -1.17 210.52
Alberta Central 211.86 -2.47 209.39
Peace 211.86 -9.31 202.55
CWSWS Future Basis Net
Alberta South 211.09 6.68 217.77
Alberta Central 211.28 6.58 217.86
Peace 211.16 6.00 217.16
CWRW Future Basis Net
Manitoba 215.57 -13.11 202.46
Sask North Central 216.65 -24.62 192.03
Sask South 215.59 -19.55 196.04
Alberta South 211.69 -23.61 188.08
Alberta Central 211.86 -22.28 189.58
Peace 211.86 -24.20 187.66
CWAD     Net
Sask North Central 291.76
Sask South 290.63
Alberta South 289.37
Alberta Central 306.20

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