CPSR wheat bids weaken amid widening basis levels

CNS Canada — Western Canadian cash bids for Canada Prairie Spring Red (CPRSR) wheat moved lower amid widening basis levels during the week ended Monday.

Canada Western Red Spring (CWRS) bids, meanwhile, were holding steady.

Prices for both varieties failed to follow the U.S. futures markets higher due to continued slow movement of the crop out of Western Canada.

Average spot bids for CWRS (13.5 per cent protein) on Monday across Manitoba, Saskatchewan and Alberta came in at around $158 per tonne, or $4.31 per bushel, based on pricing available from a cross-section of delivery points, unchanged from the week prior. Basis levels widened to an average discount of $66 relative to the futures, compared to $64 last week.

Average CPSR values were at $138 per tonne ($3.75/bu.), from $143 per tonne ($3.88/bu.) a week ago. Average basis levels widened to a discount of $92 compared to futures, from $87 last week.

U.S. wheat futures were slightly higher, as oversold price sentiment and signs that export demand for U.S. wheat is starting to pick up were supportive.

The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based off of, was quoted Monday at US$6.1075/bu., up 4.25 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 March Kansas City wheat contract gained 1.75 cents over the week, settling at US$6.2525 per bushel on Monday.

Durum prices were slightly higher, continuing to recover from recent lows. Prices moved up $2 during the week to $185 per tonne, or $5.05 per bushel.

– Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

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