CNS Canada — Western Canadian cash bids for Canada Prairie Spring Red (CPRS) and Canadian Western Red Spring (CWRS) wheat moved higher over the past week, as weather worries in the U.S. Plains and uncertainty over Black Sea grain movement boosted U.S. futures.
Average spot bids on Monday for CWRS (13.5 per cent protein) across Manitoba, Saskatchewan and Alberta came in at around $199 per tonne, or $5.43 per bushel, based on pricing available from a cross-section of delivery points. That compares with $187 per tonne ($5.10/bu.) the previous week.
Basis levels held relatively steady overall, with only small adjustments from elevator to elevator. Basis levels came in at average of $66 per tonne relative to the futures, from $67 the previous week.
Average CPSR values were at $179 per tonne ($4.88/bu.), up from $167 per tonne ($4.55/bu.) a week ago. Average basis levels held steady at an average discount of about $94 compared to futures.
The May spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$7.2425 per bushel on March 17, up 31.5 cents from the week prior.
Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The May Kansas City wheat contract gained 32.25 cents over the week, settling Monday at US$7.435 per bushel.
Mounting drought concerns in winter wheat growing regions of Kansas, Oklahoma and Texas underpinned the U.S. wheat futures. Uncertainty over possible disruptions to grain movement out of Ukraine and Russia were also supportive, as the countries are both major wheat exporters. [Related story]
Average durum prices held steady at $177 per tonne ($4.83/bu.).
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.