CNS Canada — Cash bids for Canada Prairie Spring Red (CPSR) and Canada Western Red Spring (CWRS) wheat continued to move higher amid the ongoing short-covering rally seen in U.S. wheat futures during the week ending Tuesday.
Average spot bids on Tuesday for CWRS (13.5 per cent protein) across Manitoba, Saskatchewan and Alberta came in at around $177 per tonne, or $4.81 per bushel, based on pricing available from a cross-section of delivery points, up from $168 per tonne ($4.58/bu.) last week.
Basis levels, which continued to widen amid ongoing logistics problems in Western Canada, were at an average discount of $72 relative to the futures, compared to $70 last week.
Average CPSR values were at $155 per tonne ($4.23/bu.), up from $147 per tonne ($4/bu.) a week ago. Average basis levels were unchanged at a discount of $96 compared to futures. Only a handful of locations were offering spot bids for CPSR for the second consecutive week.
U.S. wheat futures were sharply higher, as traders continued to cover their short positions amid strong export demand for U.S. wheat.
The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Tuesday at US$6.7925/bu., up 27.75 cents from the week prior.
Kansas City hard red winter wheat futures, now traded in Chicago, are more closely linked to CPSR in Canada. The March Kansas City wheat contract gained US23 cents over the week, settling Tuesday at US$6.8575/bu.
Durum prices were unchanged at $181 per tonne ($4.92/bu.), amid a lack of fresh fundamental news.
– Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.