CNS Canada — Average cash bids for Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) wheat edged higher during the week ended Monday, as U.S. futures saw a corrective bounce off nearby lows.

Average spot bids for CWRS (13.5 per cent protein) across Manitoba, Saskatchewan and Alberta on Monday came in at around C$194 per tonne, or $5.29 per bushel, based on pricing available from a cross-section of delivery points. That compares with $190 per tonne ($5.19/bu.) the previous week.

Basis levels were dependent on the location, but showed a slight improvement in some cases and narrowed in to an average discount of just under $65 relative to the futures.

Average CPSR bids came in Monday at C$148 per tonne ($4.04/bu.), which compares with average bids the previous week of $143 per tonne ($3.89/bu.). Average basis levels held steady for CPSR at $121 per tonne below the futures.

The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Monday at US$7.045 per bushel, up 7.25 cents from the previous week.

Kansas City hard red winter wheat futures, now traded in Chicago, are more closely linked to CPSR in Canada. The July Kansas City wheat contract gained 15 cents during the week, and was quoted Monday at US$7.3375 per bushel.

U.S. futures were said to be due for a correction from a technical standpoint, while ideas that recent precipitation may have been “too little, too late” for the U.S. winter wheat crop were also supportive.

Average durum prices in Western Canada held steady at $186 per tonne ($5.06/bu.).

— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.