Raw sugar futures closed Tuesday at a week-low on speculative fund liquidation and the market may grind lower in the days ahead on follow-through pressure in the sweetener, brokers said. The New York Board of Trade's March raw sugar contract dove 0.27 cent or 2.93 percent to end at 8.95 cents a lb, moving from 8.91 to 9.05 cents. It was the lowest close for the contract since finishing at 8.90 cents on January 24.

May sugar fell 0.22 cent to 9.32 cents. Losses in back months ranged between 0.08 and 0.20 cent.

"The market is correcting from its overbought condition," said James Cordier of Liberty Trading Group. A fund-led rally which hoisted sugar to its highest level in over three months has stalled, the dealers said.

Copyright Reuters, 2005