London coffees closed lower on Thursday with structural trade accounting for most of the volume as funds liquidated positions in the front month ahead of the notice period, dealers said.
Large orders of trade against actuals (AAs) boosted the turnover, which saw thin outright activity as origin sat above the market and roasters awaited lower prices.
"It was mainly May rolling to other positions and there was also a big AA in July, there's around 15,000 lots of AAs in there," a trader said.
"We have first notice day on Tuesday and until then I think we are just going to see this type of structural activity."
Benchmark July closed $3 down at $722 a tonne, having moved 19,781 lots between $727 and $719.
May lost $10 to end at $687 on 7,226 lots out of a total turnover of 30,499.
May/July traded wider around a $35 discount from $28 on Wednesday.
May positions were actively rolled into July and September ahead of first notice day for the front month next Tuesday, after the Liffe market holiday on Monday.
Dealers said there should be roaster support if the market moved back down to recent lows in the $700 area while origin offers were quickly to flourish once the market move up towards $730/740.
Roasters were in no rush to accept higher prices as a recent upward revision of the Brazilian 2004/05 crop and prospects of healthy crops in other top producers like Vietnam made them comfortable with their current cover.
Traders said persistent offers from Vietnam and Indonesia were likely to cover any nearby demand.