London white sugar futures settled lower on fund selling on Thursday, traders said, and LIFFE reported deliveries of 14,000 tonnes against the expiry of the October contract on Wednesday.
December closed down $7.5 at $237.5 a tonne in heavy volume of 7,130 lots after trading in a $237-245.2 range.
March ended down $4.4 at $252.6 in volume of 2,341 lots.
"The funds triggered a couple of sell stops around $242 and $239.70 this morning, and fund selling continued this afternoon," a trader said.
Traders said the market could adjust further downwards.
"Technically, the market does not look good," one said.
Calyon bought 10,900 tonnes (218 lots) of Brazilian sugar from Refco Overseas Ltd against expiry of the LIFFE October white sugar futures contract, Euronext and LIFFE said on their website.
ABN AMRO Futures Ltd bought 3,100 tonnes (62 lots) from Refco against the expiry.
Both deliveries are via the Brazilian port of Maceio.
Separately, the European Union sold 106,750 tonnes of white sugar at a maximum rebate of 46.1 euros per 100 kg at Thursday's tender, traders said.
Out of this, traders in Britain received 82,000 tonnes, France 15,000, Germany 9,500 and Spain 250 tonnes, they added.