PGI REFERENCE · BASIS
How Prairie cash basis works for canola, CWRS and feed barley: how to calculate it, why it widens at harvest, and why Alberta and Saskatchewan differ.
By Trent Klarenbach, BSA AgEc, PAg
Basis is the local cash price minus the futures price for the reference contract: ICE canola for canola, MGEX spring wheat for CWRS. A wide (more negative) basis means the elevator or crusher is paying less relative to the board. Basis is the farm-gate decision. Futures tell you the market's direction; basis tells you what your bushels are worth where you deliver.
Use the same units on both legs. PGI quotes canola in C$/t and wheat in C$/bu, converting wheat tonne prints with C$/t ÷ 36.744 = C$/bu. Always name the futures month and whether it is a settlement or intraday print.
Worked example (Aug 27, 2026, PDQ): interior canola cash about C$746–766/t against ICE Nov at C$804.00/t gives a basis of roughly −C$38 to −C$58/t.
When combines run, deliveries outpace handling and rail capacity, so buyers widen basis rather than cut the futures bid. A delayed harvest can hold basis firm, then let it widen sharply once standing crop becomes cash-flow supply.
Basis is regional. Alberta feed barley trades off feedlot demand. East-side Saskatchewan and Manitoba barley trades off harvest receipts. On Aug 21, 2026, Alberta feed barley was C$5.67/bu against Saskatchewan's C$4.72 (Prairie Crop Charts), nearly C$1/bu apart. That is why PGI publishes regional ranges, not one Prairie number.
No. Strong crush margins make processors willing to bid, but capacity, inventory and logistics can still keep interior basis wide. Confirm the bid at your elevator before treating crusher demand as a floor.