Cash bids for Canada Western red spring (CWRS) wheat eased across Western Canada during the week ended Sept. 3, as crop prospects were looking good amid generally favourable weather.
Reports that harvest activities have begun for some crops in all three Prairie Provinces, as well as for spring wheat in the U.S., were also bearish.
Average spot bids on Tuesday for CWRS at 13.5 per cent protein across Manitoba, Saskatchewan and Alberta came in at around C$243 per tonne ($6.62 a bushel), based on pricing available from a cross-section of delivery points, which compares to C$249 per tonne ($6.78/bu.) the week prior.
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Chicago Mercantile Exchange cattle futures fell for a third consecutive day on Thursday in profit-taking and technical selling setback following recent highs and amid some weaker-than-expected cash market sales this week.
Basis levels widened, with an average discount of C$23 relative to the futures, from a C$20 discount seen the previous week.
Canada Prairie red spring (CPRS) wheat bids were also weaker during the reporting period, amid generally good Prairie crop prospects. Average values were at C$217 per tonne ($5.91/bu.). That compares with prices of C$223 per tonne ($6.07/bu.) the previous week. Average basis levels were widened to a discount of C$40 compared to futures.
U.S. wheat futures were steady to slightly higher during the week amid a lack of fresh news.
The December spring wheat contract in Minneapolis, on which most CWRS contracts in Canada are based, was quoted at US$7.25/bu. on Tuesday, unchanged from the previous week.
Kansas City hard red winter wheat futures, now traded in Chicago, are more closely linked to CPRS in Canada. The December Kansas City wheat contract gained 1.75 cents over the week, finishing at US$6.9900 per bushel on Tuesday.
Durum prices moved slightly lower, with average spot bids down by C$2 per tonne. The average price came in at C$260 per tonne ($7.07/bu.).
— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.
