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 September 28. May lose 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.
"The funds are lightening up so we're getting pressure from that sector of the pit. Given how long the funds are in this market, we could see this thing come off some more," a long-time floor dealers said.
According to the weekly Commitment of Traders' report, the funds and small speculators net long position in futures stood at 167,698 lots as of last on Tuesday.
After edging up at the opening bell, speculative fund selling and liquidation steadily deflated futures until scale-down trade buying provided a floor and enabled the market to recover going into the close of trade, dealers said.
Technicians said they feel resistance for the March contract would be at 11.50, then all the way up to the contract peak of 11.91 cents. Support would be at 11.13 and 11 cents.
Volume traded before the close stood at 54,366 lots, versus the previous tally of 63,381 contracts. Call volume hit 8,003 contracts and puts amounted to 5,570 lots.
Open interest in the No 11 raw sugar market plunged 6,883 lots to 467,342 lots as of October 31. There were no trades in the ethanol futures market, with any quotes in the spot November ethanol contract.
US domestic sugar prices ended mostly easier.
The January contract slid 0.15 cent to 22.05 cents a lb and March fell 0.17 to 21.59 cents. The rest ranged from up 0.16 cent to 0.04 cent firmer. Volume done before the end of trade hit 1,378 lots, from the previous 179 lots.