Western Canadian wheat cash bids moved lower during the week ending Monday, marking four straight weeks of declines. Cash bids were following the continued downward trend seen in the U.S. futures markets.
Average spot bids for Canada Western red spring wheat (CWRS, 13.5 per cent protein) across Manitoba, Saskatchewan and Alberta came in Monday at around $165 per tonne, or $4.51 per bushel, based on pricing available from a cross-section of delivery points, which compares to $170 per tonne ($4.53/bu.) the week prior. Basis levels were steady from the week prior at an average of $66 relative to the futures.
Average Canada Prairie spring red (CPSR) values were at $142 per tonne ($3.87/bu.), down from $147 per tonne ($3.99/bu.) a week ago. Average basis levels were unchanged a discount of $91 compared to futures.
U.S. wheat futures were lower, as the large global supply situation and a lack of fresh demand for the US commodity continued to weigh on values.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$6.3025/bu. on Monday, down 13.75 cents from the previous week.
Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The March Kansas City wheat lost 12.75 cents over the week, settling Monday at US$6.3575/bu.
Durum prices were weaker once again amid logistical problems in Western Canada, the large global supply situation and expectations of a bigger Canadian carryout into 2014-15. Average spot bids decreased by $2 to $179 per tonne ($4.88/bu.).
— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.