Cash wheat bids across Western Canada moved higher during the week ending Monday (June 24), outpacing the U.S. futures to the upside as the weaker Canadian dollar caused basis levels to improve.
Average spot bids on Monday for 13.5 per cent-protein Canada Western red spring (CWRS) wheat across Manitoba, Saskatchewan and Alberta came in at around C$270 per tonne, or $7.34 per bushel, based on pricing available from a cross-section of delivery points. That compares with $263 per tonne ($7.17/bu.) at the same point the previous week.
Basis levels generally narrowed in by about C$5, coming in at an average discount of about $19 per tonne compared to futures prices.
Canada Prairie red spring (CPRS) bids moved higher during the reporting period as well, with average values at C$225 per tonne ($6.11/bu.). That compares with prices of $215 per tonne ($5.86/bu.) the previous week.
U.S. wheat futures posted small gains during the week. The September spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$7.8525 per bushel on Monday, up 3.75 cents/bu. from the previous week.
September wheat in Kansas City, which is more closely linked to CPRS in Canada, gained 3.25 cents on the week to trade at US$7.19/bu. The Canadian dollar was trading Monday at US95.35 cents, which compares with US98.26 cents at the same time the previous week.
Durum prices were mostly higher, with spot bids generally gaining a couple of dollars per tonne, depending on the location. The average price came in at C$292 per tonne ($7.95/bu.).
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.