Improving basis boosts Prairie wheat bids

(Country Guide file photo)

CNS Canada — Average bids for Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) wheat were stronger during the week ended Monday, as improving basis levels more than compensated for declines in U.S. futures.

Average spot bids for CWRS (13.5 per cent protein) across Manitoba, Saskatchewan and Alberta came in Monday at around C$192 per tonne, or $5.24 per bushel. That compares with $187 per tonne ($5.10/bu.) the previous week.

Changes in basis levels varied by location, but overall the average basis improved to $34 per tonne below the futures, from $43 the previous week.

Average CPSR bids came in at $144 per tonne ($3.92/bu.), which compares with average bids the previous week of $136 per tonne ($3.71/bu.). Average basis levels for CPSR in Western Canada narrowed in to $85 per tonne below the futures, from $99 the previous week.

The September spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Monday at US$6.1625 per bushel, down 13 cents from the previous week.

Kansas City (KC) hard red winter wheat futures, now traded in Chicago, are more closely linked to CPSR in Canada. The September KC wheat contract lost 19 cents during the week and was quoted Monday at US$6.2375 per bushel.

Durum prices were up during the week, with the average rising to $268 per tonne ($7.28/bu.), from $248 ($6.74) last week.

— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

 

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