Prairie wheat bids mixed with U.S. futures

Cash bids for western Canadian spring wheat were mixed, following U.S. futures during the week ending Monday (Dec. 2).

Canada Western red spring (CWRS) wheat bids were weaker, while Canada Prairie spring red (CPSR) bids were firmer.

On Dec. 2, average spot bids for 13.5 per cent CWRS across Manitoba, Saskatchewan and Alberta came in at around C$208 per tonne, or $5.67 per bushel, based on pricing available from a cross-section of delivery points, which compares to $212 per tonne ($5.77/bu.) the week prior. Basis levels were wider at a discount of $50 relative to the futures, from $45 the week prior.

Average CPSR values were at $182 per tonne ($4.96/bu.), up slightly from $181 per tonne ($4.93/bu.) a week ago. Average basis levels were steady at a discount of $77 compared to futures.

U.S. wheat futures were mixed during the week, with good demand prospects and concerns about Argentina’s wheat crop providing support. On the other side, good conditions for the U.S. winter wheat crop and the large global wheat crop were bearish.

The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$7.025 per bushel on Monday, down four cents from the previous week.

Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. March Kansas City wheat gained four cents over the week, settling at US$7.0175 per bushel on Monday.

Durum prices were stronger, as improving demand prospects and logistical problems in moving the large crop in Western Canada were supportive. Average spot bids increased by $4 to $205 per tonne ($5.59/bu.).

– Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.