Cash bids for western Canadian spring wheat continued to move lower during the week ended Monday, though basis levels were holding steady. Much of the weakness in western Canadian cash bids was linked to the losses seen in U.S. wheat futures.
Average spot bids for Canada Western red spring (13.5 per cent protein) across Manitoba, Saskatchewan and Alberta came in at around $211 per tonne ($5.74 per bushel), based on pricing available from a cross-section of delivery points, which compares to $214 per tonne, or $5.81/bu. the week prior. Basis levels were unchanged at a discount of $44 relative to the futures.
Average Canada Prairie spring red (CPSR) values were at $182 per tonne ($4.95/bu.), down from $186 ($5.05/bu.) a week ago. Average basis levels were unchanged at a discount of $73 compared to futures.
U.S. wheat futures continued to move lower during the week, as they followed losses seen in U.S. corn values.
The U.S. Environmental Protection Agency’s proposal to reduce the amount of ethanol blended into gasoline next year, which would also lower demand for U.S. corn, was bearish for both US corn and wheat. However, losses in U.S. wheat futures were limited by sentiment that the markets are oversold.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$6.9525 per bushel on Monday, down six 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 9.25 cents over the week, settling Monday at US$6.94/bu.
Durum prices were weaker, as the large global supply situation continued to weigh on prices. Average spot bids decreased by $2 to $200 per tonne ($5.43/bu.).
— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.