Cash bids for wheat across Western Canada were stronger during the week ending Monday, following the advances seen in the U.S. futures markets.
Average spot bids for 13.5 per cent-protein Canada Western red spring (CWRS) wheat across Manitoba, Saskatchewan and Alberta came in at around C$249 per tonne ($6.78 per bushel) based on pricing available from a cross-section of delivery points. That compares with $245 per tonne ($6.66/bu.) at the same point the previous week.
Basis levels held steady, with an average discount of C$24 relative to the futures, from a $25 discount seen the previous week.
Canada Prairie red spring (CPRS) bids were also stronger during the reporting period. Average values were at C$217 per tonne ($5.92/bu.). That compares with prices of $214 per tonne ($5.82/bu.) the previous week. Average basis levels narrowed slightly from the week prior at a discount of C$41 compared to futures.
U.S. wheat futures moved higher during the week, finding spillover support from the sharp advances seen in Chicago corn futures.
The September spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$7.4525 per bushel on Monday, up 8.5 cents/bu. from the previous week.
Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The September Kansas City wheat contract gained three cents over the week, finishing at US$7.0325 per bushel on Monday.
Durum prices moved slightly lower, with average spot bids down by C$2 per tonne. The average price came in at C$268 per tonne ($7.31/bu.).
— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.