Raw sugar mounted an early advance but ran into producer sales and then investors bailed late and sent sweetener values tumbling.
Consultant Jonathan Kingsman warned on Wednesday that sugar prices could fall after rallying to a three-week high this week, saying funds that piled into the sweetener may have over-reacted to talk of lower-than-expected Brazilian output.
“For the moment the reaction (latest rally) is probably a little bit too big,” Kingsman said in an interview on the sidelines of the Kingsman European Sugar Seminar.
“With the exception of Brazil, everything that we have (in the market) is bearish,” he added in a reference to expectations for big supplies from leading producers India and Thailand.
May raw sugar futures on ICE declined 0.28 cent to close 25.33 cents a lb.
London May white sugar futures fell $10.30 or by 1.5 percent to finish at $655.40 per tonne.