Raw sugar prices finished Tuesday at a five-week low on fund liquidation and the market could lose further ground as investors reduce their positions in the sweetener, brokers said.

The New York Board of Trade's key March raw sugar contract declined 0.08 cent to conclude at 11.25 cents a lb, trading from 11.16 to 11.37 cents. It was the lowest close for the contract since finishing at 11.13 cents on Sept. 28. May lost the same to 11.23 cents. Distant months retreated from 0.07 to 0.11 cent.

Analysts said the fundamental outlook for sugar is that prices will likely stay strong due to tighter stocks in 2005/06 and steady consumer buying in the months ahead.

Copyright Reuters, 2005