CNS Canada — Average cash bids for Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) were weaker during the week ended Monday, dropping $10 a tonne.
Much of the weakness was linked to spillover pressure from sharply lower U.S. wheat futures markets.
Average spot bids for CWRS (13.5 per cent protein) across Manitoba, Saskatchewan and Alberta came in at around C$185 per tonne, or $5.03 per bushel, based on pricing available from a cross-section of delivery points. That compares with $194 per tonne ($5.29/bu.) the previous week.
Basis levels were dependent on the location, but were mostly sharply wider at an average discount $74 relative to the futures, from $65 a week ago.
Average CPSR bids came in at C$138 per tonne ($3.77/bu.), which compares with average bids the previous week of $148 per tonne ($4.04/bu.). Average basis levels held steady for CPRS at C$122 per tonne below the futures.
The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Monday at US$6.80/bu., down 24.5 cents from the previous week.
Kansas City hard red winter wheat futures, now traded in Chicago, are more closely linked to CPSR in Canada. The July Kansas City wheat contract dropped by 25.5 cents during the week, and was quoted at US$7.0825 per bushel on Monday.
Weakness in the U.S. futures was linked to ideas that global wheat supplies are very large, slowing demand for U.S. supplies, and pressure from the advancing winter wheat harvest in the U.S.
Average durum prices in Western Canada were unchanged from the week prior due to a lack of fresh market moving news. Average prices were at $186 per tonne ($5.06/bu.).
— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.