Prairie CWRS bids ease with U.S. futures, CPSR up

CNS Canada — Average cash bids for Canada Western Red Spring (CWRS) wheat deteriorated slightly during the week ended Friday, with losses in U.S. futures weighing on values.

However, most other classes of wheat saw a slight improvement, as basis levels narrowed in.

Average CWRS prices were generally down by about C$1 to $2 per tonne, with the highest average bids in Manitoba, at $213 per tonne. The lowest average CWRS bids were found in north central Saskatchewan, at $199 per tonne.

Basis levels for CWRS improved by about $3 to $5 per tonne, depending on the location, with Manitoba basis averaging only $1.50 per tonne below the futures.

Average Canada Prairie Spring Red (CPSR) bids were up by as much as $13 per tonne in some parts of Western Canada, with prices coming in at about $165 in Manitoba, between $170 to $172 per tonne in Saskatchewan, and $179 to $182 in Alberta.

Average basis levels improved to $37 per tonne below the futures, from a discount of $53 per tonne the week prior.

Soft white spring (CWSWS) wheat prices were up by about $2 per tonne, ranging from $172 to $174 per tonne in Alberta. Winter wheat prices were up by $2 to $9 per tonne. Values ranged from $154 to $161 per tonne across Western Canada.

Durum (CWAD) prices were steady to slightly weaker. Spot durum prices in southern Saskatchewan, where the bulk of the crop is grown, were at roughly $347.50 per tonne. That was down by a dollar from the previous week.

The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Friday at US$5.845 per bushel, down 18.75 cents from the previous week.

Kansas City hard red winter wheat futures, traded in Chicago, are more closely linked to CPSR in Canada. The March Kansas City wheat contract was quoted at US$5.77 per bushel Friday, down 23.5 cents from last week.

The March Chicago Board of Trade soft wheat contract settled Friday at US$5.3275, 31 cents lower compared to the week prior.

— Phil Franz-Warkentin 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, as of Jan. 19, 2015. Futures prices (US$ per tonne) vary slightly due to changes while data is collected. Cash bids in C$ per tonne; currency conversion included in basis. Source: AGCanada.com.