Cash bids for western Canadian spring wheat continued were mixed during the week ending Monday (Nov. 25). Basis levels were wider on average, though some locations were showing improvement.
Average spot bids for Canada Western red spring (CWRS, 13.5 per cent protein) wheat across Manitoba, Saskatchewan and Alberta came in at around $212 per tonne, or $5.77 per bushel, based on pricing available from a cross-section of delivery points — which compares to $211 per tonne, or $5.74 per bushel the week prior. Basis levels were wider at a discount of $45 relative to the futures, from $44 the week prior.
Average values for Canada Prairie spring red (CPSR) were at $181 per tonne ($4.93/bu.), down from $182 ($4.95/bu.) a week ago. Average basis levels widened to a discount of $77 compared to futures, from $73 last week.
U.S. wheat futures moved higher during the week, as oversold price sentiment helped to underpin prices. Solid export demand and concerns about adverse weather damaging wheat crops in Australia were also bullish.
The December spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$7.0075/bu. on Monday, up 5.5 cents from the previous week.
Kansas City hard red winter wheat futures, now traded in Chicago, are more closely linked to CPSR in Canada. The December Kansas City wheat gained 9.5 cents over the week, settling at US$7.035/bu. on Monday.
Durum prices were up slightly, continuing to trade in a narrow range amid a lack of fresh news. Average spot bids increased by $1, to $201 per tonne ($5.46/bu.).
— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.