London sugar futures ended weaker on Friday on producer sales against Thursday's EU export tender, and on trade selling. Dealers said the market appeared vulnerable to further falls, possibly led by speculators. May settled down 2.3 percent at $262.5 a tonne in volume of 7,597 lots after trading between $262.0 and $270.2. August concluded down 2.1 percent at $261.1 in volume of 1,685 lots, having traded from $261.0 to $267.1.

"We have seen some producer selling against the restitution, and trade selling. I think the market could go down further - the funds are a little vulnerable because of their long position," one trader said.

The EU on Thursday awarded 188,250 tonnes of white sugar at a maximum rebate of 39.889 euros per 100 kg for the tender.

In fundamental news, France's intervention agency has three weeks from February 14 to decide whether to accept 48,000 tonnes of white sugar into storage, the first such offer made since 1986, a senior European Union source said.

Copyright Reuters, 2005