Wheat bids up across Prairies, except Manitoba

Minneapolis, Chicago and Kansas City May wheat futures all rose on the week

Wheat bids in Western Canada were strong for the week ended March 22, with gains observed everywhere except Manitoba.

Average Canada Western Red Spring (CWRS, 13.5 per cent protein) wheat prices were mostly up $4-$7 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Prices were down in Manitoba by $1-$5. Average prices ranged from about $244 per tonne in western Manitoba to as high as $268 per tonne in southern Alberta.

Quoted basis levels varied from location to location and ranged from $34 to $58 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.

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When accounting for currency exchange rates by adjusting Canadian prices to U.S. dollars, CWRS bids ranged from US$183 to US$200 per tonne. That would put the currency-adjusted basis levels at about US$10-$28 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 $6 in northern Alberta to $38 in southern Alberta.

Canada Prairie Spring Red (CPSR) wheat bids were mostly down, by $3-$5 per tonne on average depending on location. Bids in southwestern Saskatchewan were down by almost $19. Prices ranged from $200 per tonne in southwestern Saskatchewan to $226 per tonne in southern Alberta.

Average durum prices traded down about $1, from $235 per tonne in southwestern Saskatchewan to $240 per tonne in southern Alberta.

The May spring wheat contract in Minneapolis, off of which most CWRS contracts Canada are based, closed March 22 at US$5.7225 per bushel, up 17.75 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 May K.C. wheat contract closed March 22 at US$4.45 per bushel, up two U.S. cents compared to the previous week.

The May Chicago Board of Trade soft wheat contract settled at US$4.66 per bushel on March 22, up by 3.75 U.S. cents on the week.

The Canadian dollar closed at 74.57 U.S. cents on March 22, down almost a third of a cent from the previous week.

About the author

Glacier MarketsFarm

Marlo Glass

Marlo Glass writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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