Prairie cash wheat bids mixed

CNS Canada –– Canada Western Red Spring (CWRS) wheat cash bids across Western Canada were steady to slightly lower during the week ended Friday, while Canada Prairie Spring Red (CPSR) bids were mixed.

Average CWRS wheat prices were steady to C$3 per tonne lower across the three Prairie provinces, according to price quotes from a cross-section of delivery points across Western Canada. Bids ranged from about C$212 per tonne in north-central Saskatchewan, to as high as $225 per tonne in southern Alberta.

Quoted basis levels varied from location to location, but generally improved by about $2, to average about $31 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$161 to $171 per tonne. That would put the currency-adjusted basis levels at about US$17-$27 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$22 to $35 below the futures.

Average CPSR bids were narrowly mixed, with prices anywhere from C$3 per tonne lower to $4 per tonne higher. CPSR prices came in at about C$174 per tonne in Manitoba, $184 per tonne in Saskatchewan, and $193-$196 per tonne in Alberta.

Soft white spring (CWSWS) wheat prices were unchanged, ranging from C$200 to $202 per tonne in Alberta.

Winter (CWRW) wheat prices were mixed. Prices ranged from about C$179 to $186 per tonne, with the best levels in southern Saskatchewan and Manitoba.

Durum (CWAD) prices were down by C$15 per tonne. Bids in southern Saskatchewan, where the bulk of the crop is grown, came in at $318 per tonne.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.18 per bushel on Friday, down 15.75 cents from the week prior.

Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The December K.C. wheat contract was quoted Friday at US$4.9275 per bushel, down 17.5 cents from last week.

The December Chicago Board of Trade soft wheat contract settled at US$5.04 on Friday, 6.75 cents weaker compared to the week prior.

The Canadian dollar closed at US75.94 cents on Friday, which was up by about a third of a cent 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 Aug. 24, 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.