London wheat futures fell sharply on Friday, with old crop prices losing up to three pounds a tonne as sellers stepped up efforts to lock in profits amid fears of a further fall, dealers said.
With new crop contracts registering heavy losses in recent days because of receding fears that a repeat of last year's drought would again damage European output, old crop positions appeared overvalued, dealers said.
"It's been selling all the way and there are no buyers in the camp," one physical grain trader said.
"It looks the market is finally starting to react in a way it should have done some time ago. We've been trying to sell wheat quite keenly for the last fortnight but you just can't get rid of it. Buying interest is simply not there," he added.
At Liffe, nearby July was 3.00 pounds down at 94.00 pounds a tonne on 97 lots in early afternoon trade, well off the 121.75-pound high registered earlier in the season.
New crop November was 50 pence down at 77.35 a tonne on 21 lots.
Dealers said that with domestic buyers appearing relatively relaxed and export sales lagging, current prices could not be supported.
"I think prices are going to have to keep going (down), at least until we start putting wheat on boats...then we can tighten things up for the end of the season. But at the moment that just doesn't seem possible," a trader said.
Exports since the start of this year have failed to match the busy pace seen during the first half of 2003/04 (July-June) marketing campaign.
In February, customs data showed UK wheat exports to EU member states at 95,726 tonnes, less than half the level shipped out in the months running up to Christmas.