Rubber down on profit-taking

Rubber down on profit-taking

SINGAPORE (Reuters): Singapore rubber futures closed lower yesterday amid minor profit-taking from recent gains, traders said.

Rubber futures firmed recently on worries that riots in Indonesia would lead to a shortage of supply.

"Some are now hoping the political and economic situation in Indonesia will improve after Soeharto's speech and tensions in the market will ease a little," said one trader.

Indonesian President Soeharto yesterday promised reforms and elections, giving a boost to Jakarta's financial markets.

"But fundamentally the (rubber) market hasn't changed. There is still no demand and trading willingness is still very low," the trader said.

At around 0945 GMT, July RSS3 fell 0.50 cent to 79.00 U.S. cents a kg.

September TSR20 lost 0.75 cent to 78.50 U.S. cents a kg.