CNS Canada — Average cash bids for Canada Western Red Spring (CWRS) wheat moved sharply higher during the week ended Monday, following gains seen in U.S. wheat futures.
Concerns about persisting drought conditions causing further damage to U.S. winter wheat crops were behind the sharp gains seen in U.S. wheat futures during the week. Worries about political problems in Ukraine possibly disrupting wheat exports and production in the country were also bullish. [Related story]
Average spot bids on Monday for CWRS across Manitoba, Saskatchewan and Alberta came in at around C$228 per tonne, or $6.20 per bushel, based on pricing available from a cross-section of delivery points. That compares with $211 per tonne ($5.74/bu.) the previous week.
Basis levels were at an average discount of $62 relative to the futures, from $65 last week.
The July spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based off of, was quoted at US$7.8925/bu., up 35.75 cents from the week prior.
No elevators were reporting spot bids for Canada Prairie Spring Red (CPSR) wheat, with prices only being offered for new crop in August 2014 or later. There were also no spot bids for CPSR last week.
Kansas City hard red winter wheat futures, now traded in Chicago, are more closely linked to CPSR in Canada. The July Kansas City wheat contract gained 45.5 cents during the week, settling Monday at US$8.32/bu.
Average durum prices were steady, with the average price on May coming in at C$189 per tonne ($5.14/bu.), down from $190 per tonne ($5.19/bu.) last week.
— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.