Cash wheat bids across Western Canada edged lower during the week ending Monday (July 8), as losses in the U.S. futures spilled into the Canadian market.
Localized basis opportunities continued to be found in some cases, with the Canadian spot bids generally lagging the U.S. futures to the downside.
Average spot bids on Monday for 13.5 per cent-protein Canada Western red spring (CWRS) across Manitoba, Saskatchewan and Alberta came in at around C$264 per tonne ($7.20 per bushel), based on pricing available from a cross-section of delivery points. That compares with $266 per tonne ($7.25/bu.) at the same point the previous week.
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Basis levels generally improved to see an average discount of C$15 relative to the futures, which compares with average nearby basis closer to $17 the previous week.
Canada Prairie red spring (CPRS) bids moved lower during the reporting period, with average values at C$216 per tonne ($5.87/bu.). That compares with prices of $220 per tonne ($5.98/bu.) the previous week.
U.S. wheat futures posted losses during the week. The September spring wheat contract in Minneapolis, off which most CWRS contracts in Canada are based, was quoted at US$7.61 per bushel on Monday, down 9.75 cents per bushel from the previous week.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The September Kansas City wheat contract lost 1.75 cents on the week to trade at US$6.89 per bushel.
Durum prices were mostly lower as well, with average spot bids down by C$4 per tonne. The average price came in at C$286 per tonne ($7.80/bu.).
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.
