CWRS wheat bids rising with U.S. futures

CNS Canada — Cash bids for Canada Western Red Spring (CWRS) wheat moved higher over the past week, as weather worries in the U.S. Plains and uncertainty over Black Sea grain movement remained supportive for North American prices.

Average spot bids on Monday for CWRS (13.5 per cent protein) across Manitoba, Saskatchewan and Alberta came in at around $213 per tonne, or $5.80 per bushel, based on pricing available from a cross-section of delivery points. That compares with $199 per tonne ($5.43/bu.) the previous week. Basis levels held relatively steady overall at about $66 relative to the futures, with only small adjustments from elevator to elevator.

The May spring wheat contract in Minneapolis, which most CWRS contracts in Canada are based off of, was quoted Monday at US$7.63/bu., up 38.5 cents from the week prior.

Spot bids for Canada Prairie Spring Red wheat (CPSR) were largely non-existent, with many delivery locations now only bidding on new-crop wheat.

Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The May Kansas City wheat contract gained 51 cents over the week, settling Monday at US$7.945/bu. Mounting drought concerns in winter wheat-growing regions of Kansas, Oklahoma and Texas underpinned the U.S. wheat futures, with many areas in need of moisture as the crops break dormancy.

Average durum prices edged down to $174 per tonne ($4.75/bu.). That compares with $177 per tonne ($4.83/bu.) the previous week.

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

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