Cash wheat bids across Western Canada were mostly lower during the week ended Tuesday (July 2), as losses in the U.S. futures spilled into the Canadian market.
However, while the general trend was down, there were some localized basis opportunities to be found.
Average spot bids on Tuesday for 13.5 per cent-protein Canada Western red spring (CWRS) across Manitoba, Saskatchewan and Alberta came in at around C$266 per tonne ($7.25 per bushel), based on pricing available from a cross-section of delivery points. That compares with $270 ($7.34/bu.) at the same point the previous week.
Basis levels generally improved to see an average discount of C$17 relative to the futures, which compares with average nearby basis closer to $19 the previous week.
Canada Prairie red spring (CPRS) bids moved lower during the reporting period, with average values at C$220 per tonne ($5.98/bu.). That compares with prices of $225 ($6.11/bu.) the previous week.
U.S. wheat futures posted losses during the week. The September spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$7.7075 per bushel on Tuesday, down 14.5 cents per bushel from the previous week.
September wheat in Kansas City, which is more closely linked to CPRS in Canada, lost 28.25 cents on the week to trade at US$6.9075 per bushel.
Durum prices were mostly lower as well, with spot bids generally losing a couple of dollars per tonne, depending on the location. The average price came in at C$290 per tonne ($7.89/bu.).
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.