Cash bids for Canada Western red spring (CWRS) wheat were steady across Western Canada during the week ending Monday, amid improving basis levels and weakness in Minneapolis spring wheat futures.
Average spot bids for CWRS (13.5 per cent protein) across Manitoba, Saskatchewan and Alberta on Monday came in at around C$249 per tonne ($6.78 per bushel), based on pricing available from a cross-section of delivery points — unchanged from the previous week.
Basis levels improved, with an average discount of C$26 relative to the futures, from a C$24 discount seen the previous week.
Canada Prairie red spring (CPRS) bids were stronger during the reporting period, following the gains seen in Kansas City wheat futures. Average values were at C$223 per tonne ($6.07/bu.). That compares with prices of C$217 per tonne ($5.92/bu.) the previous week. Average basis levels narrowed from the week prior at a discount of C$38 compared to futures.
U.S. wheat futures were mixed during the week. Minneapolis spring wheat futures moved lower, undermined by harvest pressure in the U.S. News from Statistics Canada that Canada is expected to produce the largest wheat crop in more than 20 years in 2013-14 was also bearish. Kansas City wheat futures were stronger, following along with a rally seen in corn and soybean futures in Chicago.
The September spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$7.2925 per bushel on Monday, down 16 cents per bushel from the previous week.
Kansas City hard red winter wheat futures, now traded in Chicago, are more closely linked to CPRS in Canada. The September Kansas City wheat contract gained five cents over the week, finishing Monday at US$7.0825/bu.
Durum prices moved lower, with average spot bids down by C$6 per tonne. The average price came in at C$262 per tonne ($7.13/bu.).
— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.