CWRS wheat prices down as basis widens

CNS Canada — Cash bids for Canada Western Red Spring (CWRS) wheat eased during the week ended Monday, as U.S. wheat futures were weaker and basis levels widened.

Average spot bids on Monday for CWRS (13.5 per cent protein) across Manitoba, Saskatchewan and Alberta came in at around $192 per tonne, or $5.32 per bushel, based on pricing available from a cross-section of delivery points. That compares with $197 per tonne ($5.35/bu.) the previous week. Basis levels were at an average discount of $69 relative to the futures, from $66 last week.

The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Monday at US$7.195 per bushel, down 6.25 cents from the week prior.

Only a handful of elevators in Alberta were offering spot bids for Canada Prairie Spring Red (CPSR) wheat, with basis levels running at a discount of $100 a tonne compared to the futures for the third consecutive week. The average price was around $170 per tonne ($4.62/bu.), which compares with $173 ($4.70/bu.) the previous week.

Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The July Kansas City wheat contract lost 6.5 cents during the week, settling Monday at US$7.4175/bu.

Worries about dry weather in the southern U.S. Plains and political problems in Ukraine had U.S. futures markets rally sharply higher during the week. But forecasts calling for improving weather and reports of easing tensions in the Black Sea region took prices lower Monday.

Average durum prices were firmer, with the average price Monday coming in at $183 per tonne ($4.97/bu.).

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

 

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