CNS Canada — Canada Western Red Spring (CWRS) wheat cash bids across Western Canada were mixed during the week ended Friday, with prices edging lower in the eastern Prairies and moving up in Alberta.
Average CWRS prices were down by C$2-$4 per tonne in Saskatchewan and Manitoba, but up by C$4-$9 in Alberta, according to price quotes from a cross-section of delivery points across Western Canada. Bids ranged from about $213 per tonne in north-central Saskatchewan to as high as $228 per tonne in southern Alberta.
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Quoted basis levels varied from location to location, but generally improved by about $5, to average about $29 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 $174 per tonne. That would put the currency adjusted basis levels at about US$18-$31 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$23 to $40 below the futures.
Average Canada Prairie Spring Red (CPSR) bids were unchanged to as much as C$6 per tonne higher on the week. CPRS prices came in at about $171 per tonne in Manitoba, $180 per tonne in Saskatchewan, and $193-$197 per tonne in Alberta.
Soft white spring (CWSWS) wheat prices were up by C$1-$4 per tonne, ranging from $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$18-$22 per tonne. Bids in southern Saskatchewan, where the bulk of the crop is grown, were down by $19 at $333 per tonne.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.3375 per bushel on Friday, down 7.5 cents from the week prior.
Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The December K.C. wheat contract was quoted Friday at US$5.1025 per bushel, down 3.5 cents from last week.
The December Chicago Board of Trade soft wheat contract settled at US$5.1075 on Friday, five cents weaker compared to the week prior.
The Canadian dollar closed Friday at US76.38 cents, up by about a fifth of a cent relative to its U.S. counterpart compared to the previous week.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting. Follow CNS Canada at @CNSCanada on Twitter.
Table: The weekly snapshot of average published prices as of Aug. 17, 2015. Futures prices (US$ 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.
| CWRS | Future. . | Basis. . | Net |
| Manitoba | 191.78 | 31.23 | 223.01 |
| Sask North Central | 192.93 | 19.91 | 212.84 |
| Sask South | 192.33 | 23.07 | 215.39 |
| Alberta South | 191.16 | 36.91 | 228.07 |
| Alberta Central | 191.75 | 32.37 | 224.12 |
| Peace | 192.51 | 29.05 | 221.56 |
| CPSR | Future | Basis | Net |
| Manitoba | 182.21 | -10.96 | 171.25 |
| Sask North Central | 182.53 | -2.38 | 180.15 |
| Sask South | 182.47 | -3.41 | 179.06 |
| Alberta South | 181.41 | 15.82 | 197.23 |
| Alberta Central | 181.96 | 14.54 | 196.49 |
| Peace | 181.88 | 10.98 | 192.86 |
| CWSWS | Future | Basis | Net |
| Alberta South | 186.20 | 15.63 | 201.83 |
| Alberta Central | 186.20 | 15.76 | 201.96 |
| Peace | 186.20 | 14.56 | 200.76 |
| CWRW | Future | Basis | Net |
| Manitoba | 182.22 | 3.94 | 186.15 |
| Sask North Central | 182.85 | -3.80 | 179.05 |
| Sask South | 184.36 | 1.96 | 186.32 |
| Alberta South | 181.41 | -0.24 | 181.17 |
| Alberta Central | 181.96 | -0.52 | 181.44 |
| Peace | 182.43 | -1.97 | 180.47 |
| CWAD | Net | ||
| Sask North Central. . | 331.43 | ||
| Sask South | 333.38 | ||
| Alberta South | 336.47 | ||
| Alberta Central | 336.38 |
