May sugar lost 0.12 cent to 9.20 cents. The rest retreated from 0.01 to 0.09 cent.
"The whole month is going to be down," an investment house dealer said, adding that the rolling of positions in spot March ahead of its expiration on February 28 will keep sugar under pressure.
"We're in a liquidation month." Open interest in March sank 10,460 lots to 207,321 lots as of February 1, while interest in May rose 5,909 to 106,926 lots. Longer term, the outlook for sugar is bullish due to a supply gap and steady consumer buying.
Futures lost ground from the bell on Wednesday from fund liquidation, although talk of physical buying initially limited losses in the market, floor sources said. "The funds just kept pushing sugar down.
With the rollovers picking up, I do not see how we keep the market supported at this time," a dealer said. Technicians said resistance in the March contract would be at 9.02 cents and last week's 9.32-cent high.
Support was seen at 8.80 and in layers back to 8.50 cents. Volume traded just before the market closed for the day stood at 37,121 lots, versus the prior 79,429 lots. Call volume reached 3,660 lots and puts came to 3,851 contracts.
Open interest in the No 11 sugar market fell 5,940 lots to 421,891 contracts as of February 1.
Ethanol futures finished steady, with the February contract closing at 95 cents a gallon. US domestic sugar finished mixed on Wednesday.
March rose 0.02 cent to 20.38 cents a lb. and may ease 0.01 to 20.55 cents. The rest ranged from up 0.03 cent to 0.01 cent softer. Volume before the market closed amounted to 252 lots, down from 505 contracts previously.