London's feed wheat market settled lower on Monday but without a single lot traded after sellers and buyers stood their ground, dealers said. "With the dollar weakening against the euro and the US (wheat) market plunging, our export potential is diminishing by the minute. And in spite of all this, we're still not seeing any physical grain coming through - the market is stuck," one London broker said.
Dealers said US grain shippers would now find it easier to compete against the European Union for overseas business, a move that will keep EU prices under pressure.
Front-month Liffe January and May wheat both lost 10 pence to close at 66.90 and 70.00 pounds a tonne, respectively.
In fundamentals, Britain's chief grain marketing body, the Home Grown Cereals Authority (HGCA), said this year's wheat quality had added to increased haulage costs.
"Since northern mills have had to source suitable quality supplies from greater distances, so demand for longer journeys has risen," HGCA economist Rupert Somerscales said.
The results of the annual HGCA haulage survey showed that the average UK journey rose by 42 pence per tonne, or 6.5 percent, on last year, largely as a result of higher fuel costs.
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