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Aug 11, 2015

Prairie cash wheat bids edge higher

CNS is reporting that . . . .

Canada Western Red Spring (CWRS) wheat cash bids across Western Canada were stronger during the week ended Friday, as basis levels and U.S. futures markets also showed some improvement.

Average CWRS wheat prices were up by C$7-$10 per tonne over the week, with bids ranging from about $212 per tonne in the Peace region of Alberta, to as high as $225 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 generally improved, to average about $24 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$23-$33 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$30 to C$43 below the futures.

 Full story and details are at https://www.agcanada.com/daily/prairie-cash-wheat-bids-edge-higher