Western Canadian wheat cash bids moved lower during the week ended Jan. 13, following the sharp declines seen in the U.S. futures markets following Friday’s bearish U.S. Department of Agriculture report.
Average spot bids for Canada Western Red Spring (CWRS, 13.5 per cent protein) across Manitoba, Saskatchewan and Alberta came in at around C$160 per tonne, or $4.35 per bushel, based on pricing available from a cross-section of delivery points, which compares to $164 per tonne ($4.47/bu.) the week prior. Basis levels improved slightly from the week prior to an average of $66 relative to the futures.
Average Canada Prairie Spring Red (CPSR) values were at C$143 per tonne ($3.88/bu.), down from $145 per tonne ($3.95/bu.) last week. Average basis levels narrowed to a discount of $87 compared to futures, from $91 last week.
U.S. wheat futures were down sharply during the week, as USDA pegged higher-than-expected 2013-14 U.S. and global ending stocks for wheat in its January crop report, which was released Friday.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based off, was quoted Monday at US$6.1775/bu., down 12.75 cents compared to a week ago.
Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. March Kansas City wheat lost 24.25 cents over the week, settling at US$6.1975/bu. on Monday.
Durum prices saw a slight improvement, with average spot bids gaining $2, to $180 per tonne ($4.90/bu.).
— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.