Prairie wheat bids firm despite weakness in U.S. futures

Average bids for Canadian Western Red Spring (CWRS) and Canadian Prairie Red Spring (CPRS) wheat firmed slightly during week ended July 28, despite slight losses seen in the connected U.S. wheat futures markets, as basis levels improved at many locations.

On July 28, average spot bids for 13.5% CWRS across Manitoba, Saskatchewan, and Alberta came in at around C$177 per tonne, or $4.82 per bushel. That compares with $174 per tonne or $4.74 per bushel the previous week.Basis levels improved to $51 below the futures, from $54 the previous week.

Average CPRS bids came in at $130 per tonne, or $3.54 per bushel, which compares with average bids the previous week of $127 per tonne, or $3.45 per bushel. Average basis levels for CPRS in Western Canada narrowed in by $4, to come in at $100 per tonne below the futures.

The September spring wheat contract in Minneapolis, which most CWRS contracts in Canada are based off of, was quoted at U.S.$6.2125 per bushel on July 28, down 2 cents from the previous week.
The Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPRS in Canada. The September Kansas City wheat contract decreased by 2.50 cents during the week, and was quoted at U.S.$6.2550 per bushel on July 28.

U.S. futures were down slightly as good conditions for the U.S. spring wheat crop, pressure from the advancing U.S. winter wheat harvest and large global supply situation were bearish. But, oversold price sentiment helped to temper the losses.

Durum prices were up sharply during the week, with average values at $250 per tonne, or $6.80 per bushel, from $238 per tonne, or $6.48 per bushel last week. Concerns about unfavourable weather causing production problems in Europe helped to push prices higher, according to industry officials.