What is basis, and how it is worked out for Prairie canola and wheat
Last updated Nov 13, 2026. Latest data: week ending Nov 8, 2026, crop week 14. This page is rebuilt every week.
What is basis in grain markets?
Basis is the cash price paid for grain at a local point minus the futures price for the same grain. A basis of minus C$50 a tonne means the cash bid is C$50 below futures. On the Prairies the number is usually below zero. Markets Lab works it out in Canadian dollars a tonne for canola and CWRS wheat.
Futures prices are set on an exchange for a standard contract. A cash bid is the price an elevator posts for grain delivered to it. The basis is the gap between the two.
How does Markets Lab work out Prairie basis?
For each of nine Prairie price regions, Markets Lab takes the latest posted elevator cash bid and subtracts the futures price, in Canadian dollars a tonne. The Prairie basis is the median of the regional results. The bids and the futures prices come from PDQ (Price and Data Quotes).
- Pick the day. Each crop week uses the last day PDQ published prices for the crop on or before the week's end.
- Take each region's latest bid. PDQ reports the average posted elevator bid in each of nine regions: Peace, North Alberta, South Alberta, Northwest Saskatchewan, Northeast Saskatchewan, Southwest Saskatchewan, Southeast Saskatchewan, West Manitoba and East Manitoba. A bid more than 10 days old is not used.
- Choose the futures price. For canola it is the nearby ICE Futures canola contract PDQ quotes that day, in Canadian dollars a tonne. For CWRS wheat it is the December Minneapolis spring wheat contract of the crop year, quoted in US dollars a tonne and converted with the Bank of Canada exchange rate for that day. That rate can be at most four days old.
- Subtract. Each region's basis is its cash bid less the futures price, in Canadian dollars a tonne.
- Take the median. The Prairie basis is the middle of the regional results. It needs at least five regions, otherwise no figure is shown.
How is this different from the textbook definition?
The textbook basis is the local cash price minus the nearby futures price. Markets Lab follows that for canola. For CWRS wheat it uses the December contract for the whole crop year, so the number does not jump when the nearby month changes. PDQ's own wheat basis mixes Canadian and US dollars, so the site works out its own.
The cash bids are posted bids, not prices of completed sales. The Prairie figure is a median of regions, not the price at one elevator.
What do widening and narrowing basis mean?
A basis widens when the cash bid falls further below futures, so the number moves away from zero. It narrows when the cash bid moves closer to futures. Markets Lab calls a week's change wider when the basis is farther from zero than the week before, and narrower when it is closer to zero.
When the basis is below zero, a rise in the number is a narrowing and a fall is a widening. When every region is priced against the same futures price, the change in basis from one week to the next equals the change in the median bid minus the change in the futures price. A bid that falls less than futures narrows the basis. A bid that falls more than futures widens it.
Worked example: canola basis in crop week 14
In crop week 14, the median Prairie canola cash bid was C$691.28 a tonne on Nov 6. The nearby ICE canola futures price, for the January 2027 contract, was C$752.20 a tonne. Subtracting futures from the bid gives a basis of minus C$60.92 a tonne.
| Measure | Crop week 14 (Nov 6) | Crop week 13 (Oct 30) | Change |
|---|---|---|---|
| Median cash bid, C$ a tonne | 691.28 | 724.81 | −33.53 |
| Futures, January 2027, C$ a tonne | 752.20 | 776.10 | −23.90 |
| Basis: cash bid less futures, C$ a tonne | −60.92 | −51.29 | −9.63 |
The median is taken over 9 regions. In crop week 13 the basis was minus C$51.29, so it widened by C$9.63. The median bid fell C$33.53 and futures fell C$23.90 on the week. The change in the bid (−33.53) less the change in futures (−23.90) equals the change in the basis (−9.63).
Worked example: CWRS wheat basis in crop week 14
In crop week 14, the median Prairie CWRS wheat cash bid was C$294.23 a tonne on Nov 6. The Minneapolis spring wheat futures price for December 2026 was US$226.34 a tonne, which is C$319.43 at the Bank of Canada rate of 1.4113. The basis was minus C$25.20 a tonne.
| Measure | Crop week 14 (Nov 6) | Crop week 13 (Oct 30) | Change |
|---|---|---|---|
| Median cash bid, C$ a tonne | 294.23 | 293.58 | +0.65 |
| Futures, December 2026, US$ a tonne | 226.34 | 229.19 | −2.85 |
| Bank of Canada rate, C$ per US$ | 1.4113 | 1.3960 | +0.0153 |
| Futures, December 2026, C$ a tonne | 319.43 | 319.95 | −0.52 |
| Basis: cash bid less futures, C$ a tonne | −25.20 | −26.37 | +1.17 |
The median is taken over 9 regions. In crop week 13 the basis was minus C$26.37, so it narrowed by C$1.17. The median bid rose C$0.65 and futures fell C$0.52 on the week. The change in the bid (+0.65) less the change in futures (−0.52) equals the change in the basis (+1.17).
Where can I see the basis each week?
Each crop page shows the median bid, the futures price and the basis by week for the crop year, beside last year's value and the average and range of the five earlier crop years. Canola and CWRS wheat are the only crops with a basis chart.
Canola bids and basis. CWRS wheat bids and basis. Canola, crop week 14. How the canola board crush margin is worked out. Where to find Prairie grain prices.
Sources. Cash bids and futures prices: PDQ (Price and Data Quotes), which reports ICE Futures canola and Minneapolis spring wheat futures prices. CWRS wheat exchange rate: Bank of Canada.