Wheat bids edge up with futures, but basis still wide

CNS Canada — Western Canadian cash bids for Canada Prairie Spring Red (CPSR) and Canada Western Red Spring (CWRS) wheat moved higher over the past week, with continued strength in the U.S. futures providing some support.

Average spot bids on Monday for CWRS (13.5 per cent protein) across Manitoba, Saskatchewan and Alberta came in at around $187 per tonne, or $5.10 per bushel, based on pricing available from a cross-section of delivery points. That compares with $181 per tonne, or $4.93 per bushel the previous week.

However, basis levels deteriorated slightly, widening out to an average of $67 per tonne relative to the futures, from $65 the previous week.

Average CPSR values were at $167 per tonne ($4.55/bu.), up from $162 per tonne ($4.42/bu.) a week ago. However, many elevators were no longer offering spot prices for CPSR, with the earliest pricing available for the new crop. 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$6.9275/bu. on Monday, up 20.25 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 11.25 cents over the week, settling Monday at US$7.1125/bu.

Average durum prices were 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.

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