Prairie wheat bids up with U.S. futures, improving basis

CNS Canada — Average bids for Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) wheat were stronger during the week ended Tuesday, with improving basis levels and strength in U.S. futures behind the rise.

Average spot bids for CWRS (13.5 per cent protein) across Manitoba, Saskatchewan and Alberta came in Tuesday at around C$187 per tonne, or $5.10 per bushel. That compares with $177 per tonne ($4.82/bu.) the previous week.

Basis levels varied by location, with some remaining unchanged from a week ago and others improving by $20-$40 a tonne. Overall, the average basis improved to $43 per tonne below the futures, from $51 the previous week.

Average CPSR bids came in at $136 per tonne ($3.71/bu.), which compares with average bids the previous week of $130 per tonne ($3.54/bu.). Average basis levels for CPSR in Western Canada narrowed in by $1, to come in at $99 per tonne below the futures.

The September spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Tuesday at US$6.2925 per bushel, up eight 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 September Kansas City wheat contract rose by 17.25 cents during the week and was quoted at US$6.4275 per bushel on Tuesday.

U.S. futures were stronger as signs of improving demand for U.S. supplies lifted prices — as did short-covering, as markets were looking oversold.

Durum prices were down slightly, seeing a correction from the rally seen the week prior. Average values were at $248 per tonne ($6.74/bu.), down from $250 per tonne ($6.80/bu.) last week.

— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.



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