Mixed price action seen in Prairie wheat markets

CNS Canada — Western Canadian wheat cash bids were mixed during the week ending Monday. Canada Western Red Spring (CWRS) bids were down slightly, while Canada Prairie Spring Red (CPSR) held steady and durum prices were slightly higher.

Average spot bids for CWRS at 13.5 per cent protein across Manitoba, Saskatchewan and Alberta came in at around $158 per tonne, or $4.31 per bushel, based on pricing available from a cross-section of delivery points, down from $160 per tonne ($4.36/bu.) the week prior. Basis levels saw a slight improvement, at an average discount of $64 relative to the futures, compared to $66 last week.

Average CPSR values were unchanged compared to last week at $143 per tonne ($3.88/bu.). Average basis levels were also unchanged at a discount of $87 compared to futures.

U.S. wheat futures were steady to lower during the week. Spring wheat futures in Minneapolis were weaker due to the large global supply situation and a lack of significant developments on the export front. Hard winter wheat futures in Kansas City were steady, finding some support from worries about extremely cold weather harming U.S. winter wheat crops.

The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$6.065/bu. on Monday, down 11.25 cents from the week prior.

Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The March Kansas City wheat contract lost 0.75 cents over the week, settling Monday at US$6.225/bu.

Durum prices were up slightly to $183 per tonne ($4.97/bu.), an increase of about $3 per tonne from the week prior.

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

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