London white sugar futures closed weaker on arbitrage sales on Wednesday, and the market appeared nervous in choppy trade, traders said.Liffe March settled down $2.20 a tonne at $262.10 in volume of 4,623 lots, having moved from $265.40 to $260.60. May ended down $2.10 at $269.70 in volume of 3,983 lots after moving from $273.20 to $268.50.

"We have seen lots of arbitrage selling of May-May, August-July and October-October," one trader said.

Another trader said: "This afternoon there has been arbitrage selling, with the March-March premium at $67, with trade buying."

An analyst said: "The market is nervous. It is seeking to consolidate after recent gains."

The LIFFE whites futures market seesawed, starting weaker, clawing back gains, then reversing into losses in the afternoon as arbitrage kicked in following the opening of the NYBOT raws session, traders said.

Traders talked of Pakistani buying of 50,000 tonnes of sugar, presumably raws, but there was no confirmation.

Copyright Reuters, 2005