"Today we are seeing some profit taking by trade and speculators after yesterday's gains. Some traders are short and want the price to go lower," one trader said.
Traders said the market may still be over-stretched and risked further losses after March futures hit successive contract highs on Monday, peaking at $270.50.
Sugar consumers, betting on softer prices after sweetener values tumbled on Tuesday, may hold off on booking orders for the meantime, brokers in the United States said.
In fundamental news, EU ministers face an agonising choice over whether to let national sugar industries collapse, due to plans to change the production quota system, Europe's leading farmers' union said on Tuesday.