Wheat bids climb with U.S. futures

CNS Canada –– Cash bids for Canadian wheat climbed sharply during the week ended Friday, as a rally in U.S. futures pulled bids up across the Prairies.

Average Canada Western Red Spring (CWRS) wheat prices were C$12 to $19 per tonne higher, with bids ranging from about $218 per tonne in north-central Saskatchewan to as high as $229 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 held relatively steady at about C$11 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$175 to $184. That would put the currency adjusted basis levels at about US$28 to $37 below the futures.

Looking at it the other way around, if Minneapolis futures are converted to Canadian dollars, CWRS basis levels across Western Canada range from C$34 to $46 below the futures.

Average Canada Prairie Spring Red (CPSR) bids were C$16 to $20 per tonne higher. CPSR prices came in at about $166 in Manitoba, $173 per tonne in Saskatchewan, and $183 to C$190 in Alberta.

Soft white spring (CWSWS) wheat prices were up by C$20 per tonne, ranging from $190 to 191 per tonne in Alberta.

Winter (CWRW) wheat prices were up by C$15 to $18 across Western Canada, with prices ranging from $163 to $177 per tonne.

Durum (CWAD) prices held steady, with bids in southern Saskatchewan, where the bulk of the crop is grown, quoted at C$281 per tonne.

The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.715 per bushel on Friday, up 40.75 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 Friday at US$5.3525 per bushel, up 36.5 cents from last week.

The July Chicago Board of Trade soft wheat contract settled at US$5.17 on Friday, 40 cents stronger compared to the week prior.

The Canadian dollar closed Friday at US80.39 cents, which was down only two points 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 June 8, 2015. Futures prices (US$ per tonne) vary slightly due to changes while data is collected. Cash bids (C$ per tonne) with the currency conversion included in the basis. Source: AGCanada.com.