Canadian spot wheat bids jump with U.S. futures

CNS Canada –– Western Canadian cash bids for Canada Prairie Spring Red (CPSR) and Canada Western Red Spring (CWRS) moved higher over the past week, with a bounce in U.S. futures behind much of the strength.

Average spot bids on Monday for CWRS (13.5 per cent protein) across Manitoba, Saskatchewan and Alberta came in at around $181 per tonne, or $4.93 per bushel, based on pricing available from a cross-section of delivery points, up from $169 per tonne ($4.60/bu.) the previous week.

Basis levels also showed some improvement, narrowing in to $65 per tonne relative to the futures, from $67 the previous week.

Average CPSR values were at $162 per tonne ($4.42/bu.), up from $150 per tonne ($4.08/bu.) a week ago. Average basis levels held steady at an average discount of about $94 compared to futures.

The May spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Monday at US$6.725 per bushel, up 29.25 cents from the week prior.

Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The May Kansas City wheat contract gained 34.5 cents over the week, settling Monday at US$7 per bushel.

Gains in both the wheat markets were tied to the political unrest in Ukraine and resulting uncertainty over possible supply disruptions from the region.

Average durum prices were held steady at $177 per tonne ($4.83/bu.).

— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.


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