Prairie spot wheat bids weaken, but basis improves

CNS Canada — Western Canadian cash bids for Canada Prairie Spring Red (CPRS) and Canada Western Red Spring (CWRS) moved lower over the past 10 days as U.S. futures ran into upside resistance.

Average spot bids for CWRS (13.5 per cent protein) across Manitoba, Saskatchewan and Alberta came in at around $169 per tonne, or $4.60 per bushel, on Thursday based on pricing available from a cross-section of delivery points, down from $177 per tonne ($4.81/bu.) the previous week.

However, basis levels did show some improvement, with the average discount narrowing to $67 per tonne relative to the futures, from $72 the previous week.

Average CPSR values were at $150 per tonne ($4.08/bu.), down from $155 per tonne ($4.23/bu.) a week ago. Average basis levels narrowed in by $2 to an average discount of $94 compared to futures.

The May spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Thursday at US$6.4325/bu., down 12.5 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 lost 11.5 cents over the week, settling Thursday at US$6.655/bu.

Durum prices were down an average of $4 per tonne, 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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Phil Franz-Warkentin writes for MarketsFarm specializing in grain and commodity market reporting.

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