Western Canadian wheat cash bids and basis levels were holding steady along with the U.S. futures markets during the week ending Monday.
Average spot bids for Canada Western Red Spring (CWRS) at 13.5 per cent protein across Manitoba, Saskatchewan and Alberta came in at around $160 per tonne ($4.36 per bushel) based on pricing available from a cross-section of delivery points, unchanged from the week prior. Basis levels were holding steady at an average discount of $66 relative to the futures.
Average values for Canada Prairie Spring Red (CPSR) wheat were unchanged compared to last week at $143 per tonne ($3.88/bu.). Average basis levels were little changed at a discount of $87 compared to futures.
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As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
U.S. wheat futures were steady to slightly higher during the week, seeing a small recovery following recent sharp declines. Signs that export demand for U.S. wheat helped to provide some support for the futures, according to analysts.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Friday at US$6.1775/bu., unchanged 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. March Kansas City wheat gained 3.5 cents over the week, settling Friday at US$6.2325/bu. Both markets were closed Monday for the Martin Luther King Jr. holiday.
Durum prices were also holding steady, with prices unchanged from last week at $180 per tonne ($4.90 per bushel.
— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.
