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.