Prairie CWRS bids improve slightly despite weaker futures

CNS Canada — Average cash bids for Canada Western Red Spring (CWRS) wheat generally moved higher during the week ended Friday, despite continued weakness in U.S. futures, as basis levels improved in many areas.

Average CWRS prices were steady to up by as much as $4 per tonne, with the highest average bids in Manitoba, at $217 per tonne. The lowest average CWRS bids were found in north-central Saskatchewan, at $198 per tonne.

Basis levels for CWRS improved by about $3-$7 per tonne, depending on the location, with average Manitoba basis levels coming in at over $6 above the futures.

Average Canada Prairie Spring Red (CPSR) bids were up by $1-$5 per tonne across the Prairie provinces, with prices coming in at about $169 in Manitoba, between $171 to $175 per tonne in Saskatchewan, and $182 to $185 in Alberta.

Average basis levels improved to $28 per tonne below the futures, from a discount of $37 per tonne the week prior.

Soft white spring (CWSWS) wheat prices were up by about $6-$8 per tonne, ranging from $180 to $181 per tonne in Alberta. Winter wheat prices were steady to up a few dollars per tonne, ranging from $157 to $167 per tonne across Western Canada.

Durum prices held steady. Spot durum prices in southern Saskatchewan, where the bulk of the crop is grown, were relatively unchanged at $347 per tonne.

The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Friday at US$5.76 per bushel, down 8.5 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 K.C. wheat contract was quoted at US$5.64 per bushel on Friday, down 13 cents from last week.

The March Chicago Board of Trade soft wheat contract settled Friday at US$5.30, which was 2.75 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 as of Jan. 26, 2015. Futures prices are in US$ per tonne and vary slightly due to changes while data is collected. Cash bids are in C$ per tonne; currency conversion included in basis. Source: AGCanada.com.