Front-month December concluded down $1.80 at $271.20 per tonne in volume of 1,173 lots, after trading from $275.0 to $271.10. Total volume was 6,156 lots.
"We've had origin selling against tomorrow's tender and spread activity - good volumes in March," one trader said, referring to spread activity before expiry of the December contract on November 15.
Traders noted producer selling against Thursday's EU sugar export tender in the second half of the session, and said they expected a large tonnage award at the tender to reflect hefty 2005/06 EU exports.
Physical raw sugar demand remained subdued this week as key consuming countries harvested their crops, while Egypt's state buyer sat on the sidelines hoping futures would sink further, traders said.
COFFEE HIGHER: London coffee futures closed higher on Wednesday, supported by fund and speculative buying, traders said.
"We have seen some origin selling that is building up in the market as New York opened lower, but we still have some decent fund and speculative buying," said a trader.
Liffe's most-active January closed up $13 at $1,043 after trading in a $1,024-1,050 range. Total volume was 7,757 lots.
"We are looking for it (January) to reach $1,065 at the moment, but we are kind of expecting it to drop back again to around $1,020 and when it hits that level we will get extra fund buying. I think then the market will push to $1,120," another trader said.
Higher prices this week encouraged some Brazilian producers to sell coffee to fulfil contracts expiring this month under the government's advanced payment CPR system.
Prospects for next year's Brazilian crop remain favourable due to plentiful rain in most coffee areas.
US forecaster Meteorlogix on Wednesday predicted it would be dry with a chance of light showers in top coffee producer Brazil through Tuesday. Temperatures will be near to above normal, it said, adding that "more rain would benefit the trees" in Brazil's key coffee growing regions.
US traders say an expected upturn in Brazil's biennial crop cycle next year, coupled with favourable rains and improved crop care, could boost the country's 2006/07 output between 10 million to 20 million bags from the 2005/06 season.
COCOA FUTURES OFF HIGHS: London cocoa futures ended up but off their session highs on Wednesday, supported by light industry buying after recent lows, traders said.
"London is purely in corrective mode since the fall at the back end of last week and Monday, so a bit of commercial support is pegging the market a tad higher," one trader said.
"It's been a lacklustre session and in a really narrow band again," he added.
Liffe's front-month December contract ended the session up three at 806 pounds a tonne after trading between 800 and 809 and moving 3,758 lots.
Second month March followed the trend, nudging three pounds higher to 828.
New York opened firmer with December up as much as $10 by midsession, buoyed by light speculative covering from recent contract lows.