Prairie wheat bids fall with U.S. futures

CWRS basis levels ranged from C$12.00 to $22 below the futures.  |  Michael Raine photo

WINNIPEG (MarketsFarm) – Hard red spring wheat bids in Western Canada moved lower during the week ended Jan. 30, as a sell-off in the United States futures weighed on prices.

Concerns that the Wuhan coronavirus would lead to a slowdown in the global economy accounted for some of the broad speculative selling that weighed on most grain markets during the week.

Average Canada Western Red Spring (13.5 percent) wheat prices were down by C$9 to $11 per tonne, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about $222.50 per tonne in southeastern Saskatchewan to as high as $239.50 per tonne in southern Alberta.

Quoted basis levels varied from location to location and ranged from $25.50 to $42.50 per tonne above the futures when using the grain company methodology of quoting the basis as the difference between the U.S. dollar denominated futures and the Canadian dollar cash bids.

When accounting for currency exchange rates by adjusting everything into Canadian dollars (C$1=US$0.7566) CWRS basis levels ranged from $12.00 to $22 below the futures.

Bids for CPSR wheat were down by $10 to $13 per tonne. Prices ranged from $193 per tonne in southeastern Saskatchewan to $212.50 per tonne in southern Alberta.   

Average durum prices were mixed, posting small gains in some areas and losses of up to $10 per tonne others, with bids ranging anywhere from $264 to $282 per tonne.

The March spring wheat contract in Minneapolis, which most CWRS contracts Canada are based off of, was quoted at US$5.3650 per bushel on Jan. 30, down by 19.25 cents from the previous week.

The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The March Kansas City wheat contract was quoted at US$4.71 per bushel on Jan. 30, down 21.25 cents compared to the previous week.

The March Chicago Board of Trade soft wheat contract settled at US$5.6050 per bushel on Jan. 30, down 20 cents on the week.

The Canadian dollar closed at 75.66 U.S. cents on Jan. 30, which was down by roughly four-tenths of a cent compared to the previous week.

About the author

Phil Franz-Warkentin - MarketsFarm's recent articles

Markets at a glance


Stories from our other publications