Cash bids for western Canadian spring wheat continued to move lower during the week ended Monday (Nov. 4), continuing their downtrend alongside U.S. futures markets.
Average spot bids on Monday for Canada Western red spring (CWRS) wheat (13.5 per cent protein) across Manitoba, Saskatchewan and Alberta came in at around $219 per tonne ($5.95 per bushel) based on pricing available from a cross-section of delivery points — which compares to $226 per tonne ($6.14/bu.) the week prior. Basis levels were unchanged at an average discount of $45 relative to the futures.
Average Canada Prairie spring red (CPSR) values were at $195 per tonne ($5.32/bu.), down from $205 per tonne ($5.59/bu.) a week ago. Average basis levels widened to a discount of $73 compared to futures, from $71 the week prior.
U.S. wheat futures continued to move lower during the week, as a lack of fresh news gave the bulls no reason to sustain recent highs. Good conditions for the U.S. winter wheat crop and weakness in CBOT (Chicago Board of Trade) corn futures were also bearish.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Monday at US$7.1925 per bushel, down 17.25 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. December Kansas City wheat lost 21.5 cents over the week, settling Monday at US$7.2875 per bushel.
Durum prices were up slightly, as the market was recovering from recent sharp losses. Average spot bids increased by $1 per tonne, to $201 ($5.47/bu.).
— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.