Speculative and origin offers pressured London coffee prices lower on Tuesday, with roaster support moving lower under the impact of a stronger dollar against major currencies, dealers said.
Producers who had been waiting for prices to revisit higher levels seen earlier this month dragged the market lower through price fixing, with speculators helping the downside through liquidation of longs.
"There's been a bit of origin pressure from fixing and also roasters on the buy side... but it has mainly been structural trade. We have been busy with spreads and people moving forward their positions out of the front month," a trader said.
"Maybe we have had some spec activity and some arbitrage as well, with people eyeing first 73 and then 72 (cents per pound) in New York."
Benchmark July ended $16 down at $726 a tonne, having moved 7,666 lots between $738 and $723.
Technical analysts said the market was still in a range with the bottom around the $720 area and the top at $750.
May ended $15 down at $706 on 4,667 lots out of a total volume of 16,788.
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