Average bids for Canadian Western Red Spring (CWRS) wheat weakened slightly during week ended July 21 at a cross section of delivery points across Western Canada. However, Canadian bids lagged the U.S. futures to the downside and basis improvements were seen at many locations.
On July 21, average spot bids for 13.5% CWRS across Manitoba, Saskatchewan, and Alberta came in at around $174 per tonne, or $4.74 per bushel. That compares with $176 per tonne or $4.79 per bushel the previous week. Prices were up and down on a case-by-case basis, with basis levels improving by as much as $10 in many locations. The average discount relative to the futures narrowed in to $54, from $58 the previous week.
Average CPRS bids came in at $127 per tonne, or $3.45 per bushel, which compares with average bids the previous week of $123 per tonne, or $3.35 per bushel. While the U.S. futures were down, average basis levels for CPRS in Western Canada narrowed in by $10, to come in at $104 per tonne below the futures.
The September spring wheat contract in Minneapolis, on which most CWRS contracts in Canada are based, was quoted at U.S.$6.2325 per bushel on July 21, down 16.00 cents from the previous week.
The 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 decreased by 18.50 cents during the week, and was quoted at U.S.$6.2800 per bushel on July 21.
Durum prices posted small gains over the week, with average values at $238 per tonne, or $6.48 per bushel.
Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.