Cash bids for Canada Western red spring (CWRS) wheat across Western Canada moved lower during the week ended May 6, as concerns over North American wheat production prospects eased.
On May 6, average spot bids for 13.5 per cent CWRS across Manitoba, Saskatchewan and Alberta came in at around C$278 per tonne ($7.57 per bushel) based on pricing available from a cross-section of delivery points. That compares with $287 per tonne ($7.81/bu.) at the same point the previous week. Basis levels generally softened, with the Canadian cash market outpacing the U.S. futures to the downside.
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U.S. wheat futures were actually a little firmer for most of the reporting period, but then took a sharp turn lower as weather conditions across much of the U.S. wheat-growing areas showed improvement and yield prospects were raised. Declines in corn also spilled into the U.S. wheat futures.
The July spring wheat contract in Minneapolis was quoted at US$8.0575 per bushel on May 6, a 13 cent per bushel decline from the previous week. July wheat in Kansas City, at US$7.5675 per bushel, lost 19 cents on the week.
Canada Prairie red spring (CPRS) bids also softened over the reporting period, with average values at C$244 per tonne ($6.63/bu.), down from $255 per tonne ($6.93/bu.) seen the previous week.
Durum prices bucked the trend in wheat and generally moved higher. Spot bids rose by about C$4 per tonne from the previous week on average, with spot prices coming in at about C$270 to as much as $290 per tonne ($7.35-$7.89/bu.), depending on the location.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.
