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Prairie CWRS bids tick higher with U.S. futures

Cash CPSR values turned downward on the week, as did Kansas City wheat futures

Hard red spring wheat bids in Western Canada ticked higher during the week ended May 19, propped up by supportive action in U.S. futures.

Depending on the location, average Canada Western Red Spring (CWRS) wheat prices were up by as much as $1 in the Prairie provinces, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $231 per tonne in western Manitoba to as high as $252 in northern Alberta.

Quoted basis levels varied from location to location, but generally ranged from about $27 to $48 per tonne 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 currency exchange rates by adjusting Canadian prices to U.S. dollars, CWRS bids ranged from US$171 to US$186 per tonne. That would put the currency-adjusted basis levels at about US$18-$33 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 $24 to $45 below the futures.

Canada Prairie Spring Red (CPSR) wheat bids were down by roughly $3-$4, with prices coming in between $159 and $178 per tonne.

Average durum prices were up by between 50 cents and $3 per tonne, with bids in Saskatchewan coming in at about $257-$262 per tonne.

The July spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, was quoted May 19 at US$5.5575 per bushel, up by about nine U.S. cents from the previous week.

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 May 19 at US$4.38 per bushel, down roughly a cent compared to the previous week.

The July Chicago Board of Trade soft wheat contract settled May 19 at US$4.3525, up by roughly three U.S. cents on the week.

The Canadian dollar settled May 19 at 73.83 U.S. cents, up by nearly one U.S. cent compared to its U.S. counterpart in the previous week.

About the author

Columnist

Dave Sims

Dave Sims writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting. Dave has a deep background in the radio industry and is a graduate of the University of Winnipeg. He lives in Winnipeg with his wife and two beautiful children. His hobbies include reading, podcasting and following the Atlanta Braves.

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