Weekly review – Prairie wheat bids ease as U.S. futures fall

Cash bids for western Canadian spring wheat eased during the week ended October 28, following the losses seen in the U.S. futures markets.

On October 28, average spot bids for 13.5% CWRS across Manitoba, Saskatchewan, and Alberta came in at around $226 per tonne, or $6.14 per bushel, based on pricing available from a cross-section of delivery points, which compares to $229 per tonne, or $6.25 per bushel the week prior.

Basis levels were steady at an average discount of $45 relative to the futures, from a $46 discount the previous week.

Average CPRS values were at $205 per tonne, or $5.59 per bushel, down from $213 per tonne, or $5.80 per bushel a week ago. Average basis levels widened to a discount of $71 compared to futures, from $67 the week prior.

U.S. wheat futures moved lower during the week, undermined by overbought price sentiment and improving conditions for winter wheat planting in the Black Sea region. Beneficial weather for the establishment of winter wheat crops in the U.S. was also bearish.

The December spring wheat contract in Minneapolis, which most CWRS contracts in Canada are based off of, was quoted at US$7.365 per bushel on October 28, down 15.25 cents from the previous week.

Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The December Kansas City wheat lost 10.50 cents over the week, settling at U.S.$7.5075 per bushel on October 28.

Durum prices were weaker during the week due to the large global supplies. Average spot bids fell by $4 to $200 per tonne, or $5.45 per bushel.

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