CNS Canada –– Average cash bids for Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) were weaker during the week ended Tuesday, following sharp losses seen in U.S. wheat futures markets.
Average spot bids for CWRS (13.5 per cent protein) across Manitoba, Saskatchewan and Alberta came in Tuesday at around $207 per tonne, or $5.64 per bushel, based on pricing available from a cross-section of delivery points. That compares with $226 per tonne ($6.15/bu.) the previous week. Basis levels were unchanged at an average discount of $64 relative to the futures.
Average CPSR bids came in at $168 per tonne ($4.57/bu.), with the basis average at a discount of $117 compared to the futures. Last week, the average bid was $186 per tonne ($5.07/bu.) with the same average basis level.
The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Tuesday at US$7.3825 per bushel, down 52.5 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 July Kansas City wheat contract lost 56.25 cents during the week, settling at US$7.6825 per bushel on Tuesday.
The sharp losses in the markets were linked to speculative long liquidation amid a lack of fresh bullish news throughout most of the week, according to analysts. The large global supply situation and beneficial rainfall in the southern U.S. Plains were also bearish.
Reports that U.S. winter wheat didn’t benefit as much from the rain limited the week’s losses, as did continued slow spring wheat planting in the U.S.
Average durum prices were unchanged from a week ago, with the average value coming in at $187 per tonne ($5.09/bu.).
— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.