Prairie wheat bids fall as U.S. futures continue to tumble

CNS Canada –– Average cash bids for Canada Western Red Spring (CWRS) wheat moved lower during the week ended Friday, as U.S. wheat futures continued to tumble.

CWRS prices were ranged from $3.75 to $6 per tonne lower in Alberta and Saskatchewan. The best pricing opportunities were still available in Manitoba, where prices were down about $4.75 at $214.65 per tonne.

Basis levels for CWRS improved from the week prior, at $12.75 below the futures, from $15.80 below the week prior. The best basis opportunities were in Manitoba, where they averaged about $7 per tonne under the futures.

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Average CPSR bids were down by about $8 to $9.50 across the Prairies, with prices at about $161 per tonne in Manitoba, between $157 and $162 per tonne in Saskatchewan and $170-$174 in Alberta. Basis levels improved to $53 per tonne below the futures, from a discount of $55 per tonne the week prior.

Soft white spring (CWSWS) wheat prices were lower following the CBOT wheat market, with bids down $6-$8 per tonne on the week, ranging from $170 to $172.15 per tonne in Alberta. Winter wheat prices were also weaker, with prices from $8.25 to more than $18 lower. Values ranged from $148.50 to $159 per tonne across Western Canada, with the best pricing opportunities in Manitoba.

Durum prices were holding steady from the week prior, ranging from about $348.50 to $375 across Western Canada. Spot durum prices in southern Saskatchewan, where the bulk of the crop is grown, were at roughly $348.50 per tonne.

The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$6.0325 per bushel on Friday, down 7.75 cents from the previous week.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPRS in Canada. The March KC wheat contract was quoted at US$6.005 per bushel on Friday, down 16.5 cents from the previous week.

The March Chicago Board of Trade (CBOT) soft wheat contract settled at US$5.6375 on December 26, 17.5 cents lower compared to the week prior.

— 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 Monday of each week, released Jan. 12, 2015. Futures prices are in $US per tonne and vary slightly due to changes while data is collected. Cash bids are in Canadian dollars per tonne, with the currency conversion included in the basis. Source: AGCanada.com.

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