London white sugar futures settled weaker on speculator and producer selling on Wednesday and traders noted pre-hedge selling ahead of Thursday's EU export tender which they said could award a big tonnage again.
Front month December ended down $3.8 at $237.1 a tonne in volume of 1,370 lots, at the bottom end of a $241.80-237.10 range.
March ended down $3.4 at $253.0 in volume of 593 lots, having traded in a $257.0-253.0 range.
"We have seen some speculative and producer selling today, but activity is quiet because of London sugar week," one European trader said, adding that many market participants were travelling to London for meetings ahead of a trade dinner.
Hundreds of traders and brokers from around the world will attend the London sugar trade's premier dinner at the prestigious Guildhall on Friday.
Traders noted pre-hedge selling ahead of Thursday's regular EU export tender, and some predicted that a large tonnage would be awarded as countries scramble for export licences at the start of the 2004/05 campaign.
"All eyes will be on the rebate tomorrow. We could see an aggressive discount like last week," one trader said.