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Indonesia's natural rubber output is expected to grow nearly 5 percent this year to 2.765 million tonnes, agriculture ministry data showed on Wednesday.
Indonesia produced 2.637 million tonnes in 2006. Asia physical rubber BANGKOK: Asian physical rubber prices were mostly flat on Wednesday as strong demand offset a dip in the benchmark rubber contract on the Tokyo Commodity Exchange.
Physical trade was active with Chinese and Japanese buyers seeking Thai RSS3 and STR20 as prices were quite cheap after falling for a couple of days, traders said.
"Buyers from the United States and Europe were also interested as prices were attractive," one trader said. Traders expected physical rubber prices to remain firm after slipping over the past few days due to improving supply.

Copyright Reuters, 2007

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