Cash bids for wheat across Western Canada moved lower during the week ended July 29, following along with the tumbling wheat futures markets in the U.S.
On July 29, average spot bids for 13.5% CWRS across Manitoba, Saskatchewan, and Alberta came in at around $245 per tonne, or $6.69 per bushel, based on pricing available from a cross-section of delivery points. That compares with $255 per tonne, or $6.95 per bushel, at the same point the previous week. Generally favourable growing conditions across Western Canada caused basis levels to widen to an average discount of $23 relative to the futures, from a $19 discount seen the previous week.
Canada Prairie Red Spring (CPRS) bids also moved lower during the reporting period, with average values at $210 per tonne, or $5.74 per bushel. That compares with prices of $219 per tonne, or $5.96 per bushel the previous week. Average basis levels also widened to a discount of $43 compared to futures, from $38 the week before.
U.S. wheat futures moved lower during the week, following along with the sharp losses seen in grain and oilseed futures on the Chicago Board of Trade. Adding to the selling pressure were reports that wheat crops in other parts of the world, including Russia and Europe, are doing well.
The September spring wheat contract in Minneapolis, which most CWRS contracts in Canada are based off of, was quoted at US$7.3425 per bushel on July 29, down 12.50 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 11.75 cents over the week, finishing at US$6.9025 per bushel on July 29.
Durum prices were weaker, with average spot bids down by $4 per tonne. The average price came in at $279 per tonne, or $7.61 per bushel.
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