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Sep 15, 2015

Prairie wheat bids climb higher

CNS Canada — Cash wheat bids across Western Canada posted solid gains during the week ended Friday, as U.S. futures recovered from their five-year lows and Canadian basis levels showed some improvement.

Average Canada Western Red Spring (CWRS) wheat prices were up by C$9 to $13 per tonne across the three Prairie provinces, according to price quotes from a cross-section of delivery points. Bids ranged from about $221 per tonne in southern Saskatchewan, to as high as $233 per tonne in southern Alberta.

Quoted basis levels varied from location to location, but improved by C$5 on average to sit at $36 above the futures when using the grain company methodology of quoting the basis as the difference between U.S. dollar-denominated futures and the 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$167 to $176 per tonne. That would put the currency adjusted basis levels at about US$14 to $23 below the futures.