Cash bids for spring wheat in Western Canada were steady to lower during the week ended Monday (Sept. 23), while basis levels continued to ease amid harvest pressure.
Average spot bids for Canadian Western red spring (CWRS) wheat at 13.5 per cent protein across Manitoba, Saskatchewan and Alberta came in on Monday at around C$218 per tonne ($5.94 per bushel), based on pricing available from a cross-section of delivery points, which compares to $222 per tonne, ($6.05/bu.) the week prior.
Basis levels widened to average discount of C$39 relative to the futures, from a $35 discount seen the previous week.
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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.
Average Canadian Prairie red spring (CPRS) values were steady at C$200 per tonne ($5.45/bu.). Average basis levels widened to a discount of C$56 compared to futures, from $53 the week prior.
U.S. wheat futures were mixed amid expectations of large global wheat production and news that China will need to import more wheat this year due to problems with its own crop.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$6.9875 per bushel on Monday, down three cents per bushel from the previous week.
Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The December Kansas City wheat contract gained eight cents over the week to finish at US$6.9775 per bushel on Monday.
Durum prices continued to move sharply lower, with much of the weakness linked to expectations of an extremely large crop out of Western Canada, as well as harvest pressure.
Average spot bids were down by C$15 per tonne from the week prior at $218 ($5.95/bu.).
— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.
