Red spring wheat bids ease as basis widens

CNS Canada — Average cash bids for Canada Prairie Spring Red (CPSR) wheat eased during the week, despite a firmer tone in U.S. futures, as basis levels widened in many areas of Western Canada.

Canada Western Red Spring (CWRS) bids increased, however, amid improving basis levels.

Average CPSR bids were down by 15 cents to $3.75 across the Prairies, with prices at $143.95 per tonne in Manitoba, $148-$152 per tonne in Saskatchewan and $156-$159 in Alberta. Basis levels widened to about $62 below the futures, from a discount of $56 the week prior.

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CWRS prices were up between $1 and $11 compared to a week ago, as basis levels for the crop improved in most regions. The best pricing opportunities were still available in Manitoba, where prices were about $215 per tonne. Prices in Saskatchewan ranged from $198 per tonne in the north to $208 in the south. In Alberta, CWRS prices were quoted between $196 and $206.

Basis levels improved, with average discounts across the Prairies at about 50 cents per tonne, compared to $2.50 per tonne below the futures last week. Many locations in Manitoba were offering basis levels above the futures, ranging from about $7.00 under, up to $27.00 above.

Soft white spring wheat prices were holding steady, with bids down $2 to up about $2 per tonne on the week, ranging from $144 to $146 per tonne in Alberta. Average winter wheat prices were up between $2 and $6 per tonne during the week, ranging from $134 to $147 across Western Canada, with the best pricing opportunities in southern Saskatchewan.

Durum prices were holding steady during the week, ranging from unchanged to $2.25 per tonne higher. Spot durum prices in southern Saskatchewan, where the bulk of the crop is grown, gained about $2.25 on average to trade at roughly $326 per tonne.

The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$5.5325 per bushel on Friday, up 9.75 cents from the previous week.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The December Kansas City wheat contract gained 9.75 cents during the week, and was quoted Friday at US$5.7775 per bushel.

The December Chicago Board of Trade soft wheat contract settled Friday at US$4.985, which was up 12.75 cents from the previous week.

— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

Table: The weekly snapshot of average published prices, available on Mondays, as of Oct. 14, 2014. Futures vary slightly due to changes while data is collected. Prices in Canadian dollars per tonne. Source: AGCanada.com.

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