Wheat bids on Prairies rise with U.S. futures

CNS Canada –– Wheat cash bids across Western Canada moved higher in most classes during the week ended Friday, with gains in U.S. futures behind much of the strength.

Average Canada Western Red Spring (CWRS) wheat prices were steady to up by as much as $8 per tonne during the week, with bids ranging from $208 per tonne in north-central Saskatchewan to $228 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 were generally softer if using the grain company methodology of quoting the basis as the difference between U.S. dollar-denominated futures and the Canadian dollar cash bids.

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When accounting for the currency exchange rates by adjusting Canadian prices to U.S. dollars, CWRS bids ranged from US$165 to $181, which would put the currency adjusted basis levels at about US$37-$53 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$46 to $66 below the futures.

Average Canada Prairie Spring Red (CPSR) bids were up by C$5 to $10 tonne during the week. CPSR prices came in at about $185 in Manitoba, at about $186-$187 per tonne in Saskatchewan, and $197-$203 in Alberta.

Soft white spring (CWSWS) wheat prices were up by about $4-$7 per tonne, ranging from $190 to $193 per tonne in Alberta. Winter wheat prices were up by $7-$10, ranging from $165 to $172 per tonne across Western Canada.

Durum (CWAD) prices, meanwhile, were steady on the week, with prices in southern Saskatchewan, where the bulk of the crop is grown, unchanged at $318 per tonne.

The May spring wheat contract in Minneapolis, which most CWRS contracts in Canada are based off of, was quoted at US$5.895 per bushel on Friday, up 22 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 was quoted Friday at US$5.695 per bushel, up 30.25 cents from last week.

The May Chicago Board of Trade soft wheat contract settled at US$5.30 on Friday, 28 cents higher compared to the week prior.

The Canadian dollar finished the week at US79.5 cents, up by over 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 March 23, 2015. Futures prices (US$ per tonne) vary slightly due to changes while data is collected. Cash bids (C$ per tonne) have the currency conversion included in the basis. Source: AGCanada.com.

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