[Kabar-indonesia] 18 Biz/Econ Reports: Sinar Mas US$500m Oil Palm Project; Rice; Rajawali [+JSX]

[JoyoNews at aol.com]

18 Reports:

- Indonesia May Lift Rice Import Ban
    From Aug -Official
- Indonesia's Sinar Mas to invest 
  US$500 million in oil palm project
- Rajawali, Cemex To Sign Deal 
  On Semen Gresik Sale Fri
- Indonesia's debt to IMF scheduled to be
    paid off by the end of 2006
- Indonesia ready to take over as main supplier
    of shoes to EU
- Bloomberg: Garuda may receive Rp 500b from
    government
- Indonesia Shares End Up 2.7% On Blue Chip 
  Bargain-Hunting
- Indonesia Rupiah Ends Up 1% On Dollar's 
  Global Slide
- Indonesia's Argo expects to finalize debt
     restructuring with Bank Mandiri soon
- Indonesia's Bank Mega may scrap plan to
    issue bonds this year
- Indonesia's Kalbe Farma repays entire foreign
     debt of 66.58 mln usd
- Indonesia building firm eyes $11 million
    from IPO
- Indonesia plans export duty on cane
    molasses
- Indonesian forestry ministry raises logging
    quota
- Indonesia palm oil rallies on Malaysia
    gains
- Indonesia's Cocoa,Coffee Spared From 
  Seismic Disturbances
- Asian Cocoa: Prices Tumble On Steep
    Futures Losses
- Asian Rubber Futures Settle Dn On Weak
    Sentiment, Supply

Indonesia May Lift Rice Import Ban From Aug -Official

July 20 (Dow Jones) -- Industry analysts said rice harvests are also 
being damaged by earthquakes, floods, and the recent tsunami that
struck Java. 


Bayu said the government needs to review its rice import policy to
avoid possible domestic rice price fluctuations as a result of a
supply shortage.

Earlier this year, before the drought kicked in, the Central
Statistics Bureau had forecast that Indonesian production of unmilled
or husked rice would reach 54.25 million metric tons in 2006, up 0.37%
from in 2005.

Indonesia imposed a ban on rice imports in January 2004 as rampant
smuggling of rice into the country was eroding the incomes of domestic
farmers.

In 2003, Indonesia imported 1.45 million metric tons of rice, with
Vietnam and Thailand accounting for 59% and 39% of the imports,
respectively.

-----------------------------------

Indonesia's Sinar Mas to invest US$500mln in oil palm project

JAKARTA, July 20 Asia Pulse - The Sinar Mas Group is set to expand its
agribusiness venture with a plan to build a US$500 million oil palm
plantation in West Kalimantan along the border with Malaysia.

Sinar Mas Managing Director Gandi Sulistiyanto said a consortium of
Chinese banks has agreed to finance the project and work will be
handled by Chinese contractor China International Trust and Investment
Corporation (CITIC) Group.

CITIC, which had assets valued at US$85 billion in late 2004, will be
responsible for the construction of infrastructure, bridges,
irrigation system, warehouses and other supporting facilities, Gandhi
said yesterday.

Construction of the 100,000 hectare plantation is to be completed in
the next 7 years and by 2010, the land is expected to be ready for
planting, he said.

He said the government awarded the project to the Sinar Mas Group for
its contribution in attracting Chinese investors to the country.

-----------------------------------

Rajawali, Cemex To Sign Deal On Semen Gresik Sale Friday

JAKARTA, July 20 (Dow Jones)--Indonesian conglomerate Rajawali Group
plans to sign an agreement to buy Cemex SA de CV's (CX) stake in
state-controlled cement maker PT Cement Gresik (SMGR.JK) later
Thursday or Friday, a senior official with Rajawali told reporters
Friday.

Rajawali will buy Cemex's 24.9% stake in Gresik for $337 million.

"We expect to close the deal later today or tomorrow following an
approval from the government which owns the majority stake in Gresik,"
said Rajawali Corporation's managing director and chief of business
development, Darjoto Setyawan.

Darjoto said that Rajawali will pay Cemex for the Gresik stake Monday.
[ 20-07-06 0811GMT ]

Cemex currently owns 25.53% of Gresik, which means that following the
sale of the 24.9% stake, it will retain a small holding in Gresik.
Analysts have said this indicates the Mexican company wants to
maintain a presence in Indonesia.

The Gresik stake sale has been delayed several times, pending approval
from the government, which owns 51.01% of the cement company.

The stake sale deal was initially scheduled to be signed last Friday.

The government wanted the sale agreement to include a stipulation that
Rajawali would not be given privileges similar to those originally
granted to Mexico's Cemex.

The government also demanded that Cemex drop international arbitration
proceedings against the country before it would approve the deal with
Rajawali.

Analysts said approval for the deal indicates that all conditions
demanded by the government have been fulfilled by Rajawali and Cemex.

In 2003, Cemex initiated an arbitration claim at the International
Court for Settlement of Investment Disputes, a Washington D.C.-based
affiliate of the World Bank, alleging the government had blocked its
efforts to take a majority stake in Gresik despite an agreement
granting the Mexican firm the right to purchase shares.

After the government canceled the sale of additional shares to Cemex,
a move analysts attributed to domestic political pressure, the Mexican
company decided to sell a large part of its Gresik stake.

Semen Gresik is the nation's largest cement producer by output.

--------------------------------------

Indonesia's debt to IMF scheduled to be paid off by the end of 2006

MALANG, July 20 (Asia Pulse/Antara) - Deputy Senior Governor of Bank
Indonesia Miranda S.Goeltom said here Wednesday that Indonesia`s debt
to the International Monetary Fund (IMF) is scheduled to be entirely
paid off by the end of 2006.

Indonesia`s debt to the IMF will come due in 2010, but the repayment
will be speeded up so as to entirely paid off the debts as about 50
per cent of the debt has been repaid, she explained at the campus of
Brawijaya State University here.

Miranda disclosed that Indonesia`s foreign exchange reserves in the
hands of Bank Indonesia total US$41 billion at present, and the total
is sufficient for the prepayment of the debt to the IMF.

Besides the adequate foreign exchange reserves, global certainty is
another factor that makes it possible for Indonesia to pay off earlier
the debt to that world monetary body, according to the banker.

The Indonesian Government signed a US$7.8 billion loan from the IMF in
1997 due to an economic crisis hitting the country that year, but
about half of the debt has been paid off. The debt will mature in
2010, but the government plans to pay off the debt entirely by the end
of 2006.

----------------------------------------------------------

Indonesia ready to take over as main supplier of shoes to EU

JAKARTA, July 20 (Asia Pulse/Antara) - The national shoemakers
association (Aprisindo) said Indonesian producers are ready to take
over from China and Vietnam as the main suppliers of shoes to Europe.

The European Union has punished Chinese and Vietnamese suppliers with
anti dumping import duty, making their products less competitive
opening the opportunity for Indonesian suppliers.

Aprisindo chairman Eddy Widjanarko said a team of Aprisindo, the trade
ministry and industry ministry held a meeting ending today in Brussels
with the European Confederation of Footwear Industry and Federation of
European Sporting Industry to discuss plan to increase shoe supply
from Indonesia.

Data at Aprisindo show that Indonesia exported 27 million pairs of
leather shoes valued at US$275 to Europe in 2005 or 15.8% of the
country's total exports of US$1.5 billion.

In 2006, the country's exports are forecast to rise to US$1.7 billion.

-----------------------------------------------------------

Garuda may receive Rp 500b from government

JAKARTA, July 20 (Bloomberg): PT Garuda Indonesia, the nation's
biggest airline, may receive a capital injection of Rp 500 billion
(US$55 million) from the government this year as the carrier
strugglesto stay afloat amid surging oil prices.

The money will be used for working capital, said Mohamad Ikhsan, a
senior adviser to Coordinating Minister for the Economy Boediono. The
Jakarta-based carrier stopped making principal payments on its $794
million of debt at the end of last year to preserve cash.

"For now, they will receive cash for a breather," Ikhsan told
reporters in Jakarta Thursday.

Garuda is one of several cash-strapped state companies that may
receive government help in the state budget this year, he said. A
total of Rp 3.2 trillion may be allocated for state companies and
infrastructure projects, according to a governmentdraft of the revised
2006 budget.

The airline, which posted a second-straight annual loss last year, is
struggling to cope with record oil prices and competition from
profitable Asian rivals such as Singapore Airlines Ltd.

-----------------------------------------------------

Indonesia Shares End Up On Blue Chip Bargain-Hunting

JAKARTA, July 20 (Dow Jones)--Indonesian shares ended sharply higher
Thursday led by bargain-hunting in telecommunication and bank blue
chips, with easing oil prices and the firmer rupiah providing strong
support.

Dealers said gains on Wall Street overnight amid hopes that interest
rates there will be kept on hold added to the positive sentiment.

"The market rebounded sharply and may continue to gain tomorrow on
further bargain-hunting," said a trader with a local securities firm.

The Jakarta Stock Exchange Composite index ended up 35.094 points, 
or 2.7%, at 1315.590. The main index had fallen 4.7% in the previous four
sessions.

Gainers led decliners 104 to 17, with 58 shares unchanged. Volume was
995 million shares valued at IDR1.47 trillion, compared with 700
million shares valued at IDR813 billion Wednesday.

At 0924 GMT, the dollar was trading lower at IDR9,170, compared with
Wednesday's close at IDR9,255.

Heavyweight Telekomunikasi Indonesia rose 4.2% to IDR7,450 ahead of
the company's plan to give a IDR218.86 per share dividend to
shareholders registered as of Friday.

Telkom's rival Indosat gained 2.3% to IDR4,375 on its plan to give
IDR149.32 per share to shareholders registered as of Thursday.

Dealers said investors bought shares in banks on renewed expectations
that the firmer rupiah will persuade the central bank to continue to
cut its benchmark interest rate, which is now at 12.25%.

Bank Mandiri, the nation's largest bank by assets, rose 2.5% to
IDR1,670, Bank Rakyat, the fourth-largest bank, gained 6.4% to
IDR4,250 and Bank Danamon, the fifth-largest lender, ended up 4.5% at
IDR4,075.

Also higher on bargain-hunting were nickel miner Inco, which rose 3.9%
to IDR20,200, and nickel and gold miner Aneka Tambang, which advanced
6.4% to IDR4,575.

Dealers expect the market to trade higher Friday on follow through
buying in bank and telecommunication blue chips.

----------------------------------------------------------------------

Indonesia Rupiah Ends Up On Dollar's Global Slide

JAKARTA, July 20 (Dow Jones)--The Indonesia rupiah closed nearly 1%
higher Thursday thanks to the dollar's slide globally after oil prices
saw some respite, dealers said.

'Importers, however, bid the dollar on its slide, preventing the
dollar from falling further,' a dealer said.

The dollar closed at IDR9,170, down from Wednesday's close at IDR9,255.

The greenback fell to an intraday low of IDR9,145 earlier in the day
because of capital inflows into Indonesian shares and bonds, dealers
said. Local stocks ended up 2.7% Thursday, boosted by foreign funds
buying blue chips.

Although the dollar will likely continue sliding Friday, dealers said
uncertainties over global oil prices may trigger fresh dollar bids.

'We are remaining cautious as the market is still uncertain,' a dealer
with a foreign bank said.

Dealers expect the dollar to trade between IDR9,150 and IDR9,200 Friday.

------------------------------------------------------------

Indonesia's Argo expects to finalize debt restructuring with Bank Mandiri soon

JAKARTA, July 20 (XFN-ASIA) - Textile maker Argo Manunggal Group says
it expects to reach agreement soon with Bank Mandiri on the
restructuring of its 2.3 trln rupiah in debts to the bank, Bisnis
Indonesia reported.

The newspaper quoted Argo director Sjambiri Lioe as saying: "Many
issues in the debt restructuring talks have been settled or
near-settled. There are no longer principal problems. Hopefully we
will agree on the debt restructuring soon."

He said that the group would sell some of its assets to settle
unsustainable debts, and that it had proposed the rescheduling of its
sustainable debts.

Argo Manunggal Group's debt is owed by subsidiaries, including 826.19
bln rupiah owed by PT Argo Pantes and 615.39 bln rupiah owed by Alfa
Goldland Realty.

------------------------------------------------------------

Indonesia's Bank Mega may scrap plan to issue bonds this year

JAKARTA, July 20 (Asia Pulse/Antara) - Publicly listed Bank Mega
(JSX:MEGA) said it may cancel plans to issue bonds valued at Rp1
trillion (US$111 million) this year after it received Rp500 billion
from a rights issue.

The rights issue raised funds which are considered sufficient to
increase the capital adequacy ratio (CAR) of the bank, a bank Director
Kostaman Thayib said.

The plan may be renewed next year, Thayib said.

He said the bank's CAR is predicted to reach 12 per cent-13 per cent
by the end of this year.

Bank Mega had earlier announced plans to issue bonds and undertake a
rights issue to raise Rp1.5 trillion.

------------------------------------------------------------

Indonesia's Kalbe Farma repays entire foreign debt of 66.58 mln usd

JAKARTA, July 20 (XFN-ASIA) - Pharmaceutical firm PT Kalbe Farma has
repaid its entire remaining foreign debt of 66.58 mln usd, corporate
secretary Justian Sumardi said in a statement.

He said Kalbe used its internal cash flow and the proceeds from a 300
bln rupiah bond issue to repay the debt.

----------------------------------------------------------

Indonesia building firm eyes $11 million from IPO

JAKARTA, July 20 (Reuters) - Indonesian construction firm PT Total
Bangun Persada Tbk said on Thursday it aims to raise 103.5 billion
rupiah ($11.19 million) through an initial public offering this month.

Total is offering 300 million shares at 345 rupiah each to strengthen
the company's capital base and plans to list on the Jakarta Stock
Exchange <.JKSE> on July 25.

Total said it was willing to sell another 550 million shares after the
IPO at the same price, which could take total proceeds from the
offerings to 293.25 billion rupiah.

Total said the 850 million shares represent 30.9 percent of the company's 
stake.

CLSA will be the lead underwriter for the offering, which will take
place on July 19-21.

Total had total assets of 743.4 billion rupiah as of Feb. 28.

The company booked a net profit of 62.12 billion rupiah last year, up
from 42.8 billion, while its revenue increased to 1.16 trillion rupiah
from 1.08 trillion over that period.

----------------------------------------------------------

Indonesia plans export duty on cane molasses

JAKARTA, July 20 (Reuters) - Indonesia is planning to impose an export
duty on cane molasses to secure domestic supplies for its growing
ethanol industry, a senior trade minister said on Thursday.

Domestic demand for cane molasses is expected to increase this year as
soaring crude oil prices have prompted investors to open new ethanol
factories this year, Diah Maulida, director general of foreign trade
at the trade ministry told reporters.

Ethanol is used as an alternative motor fuel or fuel additive.

"The government is drafting regulations on molasses exports because
there is a shortage of supply for the domestic industry, particularly
ethanol," Maulida said.

She did not provide details on the export duty, but said a team of
officials from the trade, finance and industry ministries is in the
process of calculating the duty.

Molasses are a thick syrup produced from sugar cane during the sugar
extraction process. They are used in the making of ethanol and food
seasoning monosodium glutamate (MSG).

Indonesia produces an average of 1.3 million tonnes of molasses per
year, while demand from the ethanol and food seasoning industries
averages 800,000 tonnes and 500,000 tonnes a year respectively.

But the domestic industries do not get enough supplies due to growing
molasses exports as the commodity fetches a higher price in the export
market, Maulida said.

"Molasses are sold for $81 a tonne to domestic industries. They can
fetch up to $105 a tonne when exported," she said.

Cane molasses exports stood at 227,448 tonnes in 2005, a 17 percent
increase from 194,953 tonnes in 2004, based on data from the trade
ministry.

Indonesia exports cane molasses to Vietnam, Taiwan, Japan, India and
South Korea.

----------------------------------------------------------

Indonesian forestry ministry raises logging quota

JAKARTA, July 20 (Asia Pulse/Antara) - Indonesia's Forestry Ministry
has decided to increase its logging quota to 9.1 million cubic meters
in 2007 from 8.1 million cubic meters last year.

Forestry Production Director General Hadi S. Pasaribu said the
increase was possible as a result of a soft landing launched in 2002.

There is a significant increase in the number of forest trees that are
ready for cutting, Hadi said, adding, now the country's natural
forests have been able to sustainably produce up to 13 million cubic
meters of trees a year.

Therefore, it will be safe to cut nine million cubic meters, he said.

Timber processing industries have complained about the scarcity of log
supply resulting in dwindling exports of timber such as plywood.

The country's timber processing industries need around 40 million
cubic meters of trees with supplies from natural forests, plantation
forests, people's forests and other sources.

---------------------------------------------------------

Indonesia palm oil rallies on Malaysia gains

JAKARTA, July 20 (Reuters) - Indonesian palm oil prices rose on
Thursday buoyed by a rally in Malaysia crude palm oil futures, luring
players to return to the market after days of remaining on the
sidelines, traders said.

At a local auction in Medan, crude palm oil was quoted at 4,075 rupiah
($0.445) a kg, up from 4,052 rupiah a kg on Wednesday.

At the state marketing centre's auction in Jakarta, CPO was traded at
4,077 rupiah a kg, up from 4,052 rupiah a kg on Wednesday.

"Sellers are pouring into the market. I think prices have breached
4,100 in trading outside the local auctions. Buyers are also quite
aggressive," said a trader in Medan, the capital of North Sumatra
province and the key port for palm oil exports.

"It's difficult to see where the market is heading, but the uptrend is
likely to remain for the short-term," he added.

RBD palm olein in Jakarta was quoted at 4,460 rupiah ($0.487) a kg, up
from 4,440-4,450 rupiah a kg on Wednesday.

Malaysian crude palm oil futures ended sharply higher on Thursday with
the benchmark third-month October contract <KPOV6> on the Bursa
Malaysia Derivatives closing up 3.3 percent to 1,591 ringgit ($432) a
tonne.

A decision by the world's top palm producers -- Malaysia and Indonesia
-- to set aside 40 percent of their annual output for biodiesel and
Malaysia's strong palm oil exports prompted rallies in Malaysia crude
palm oil futures.

But gains in prices did not spill over to the export front with
sellers cautious on price movement.

There was no offers for August shipment, but buyers bids stood at $410
a tonne, free on board Belawan. No deals were reported.

Sellers offered September shipment at $417.5 a tonne, free on board
Belawan. Bids were seen at between $410 and $412.5 a tonne without any
deals but no trades reported.

------------------------------------------------------------

Indonesia's Cocoa,Coffee Spared From Seismic Disturbances

SINGAPORE, July 20 (Dow Jones) -- Coffee and cocoa plantations in
Indonesia have been largely spared from the seismic upheavals that hit
the country this week, with industry sources saying Thursday that some
growers are in reality more concerned about weather conditions.

A 6.2-magnitude quake rocked western parts of the island Wednesday -
two days after an undersea tremor triggered a tsunami off the southern
coast of Java. While there have been no immediate reports of
casualties in the latest quake, tsunami fears have spurred residents
to flee for higher ground. Monday's tremor killed more than 530 people
and displaced more than 35,000 from their homes.

Zulhefi Sikumbang, secretary general of the Indonesia Cocoa
Association, said cocoa plantations haven't been affected as the
tremors weren't close to the growing areas of Sulawesi, a massive
island separated from Java by the Java Sea.

A trader in Makassar, the capital of South Sulawesi province and main
port for Indonesia's cocoa exports, said: "The main focus now is
weather developments. If there are any major changes, the mid crop
will be affected further."

The dry season has kicked in, though somewhat later compared to
previous years, providing much relief to trees that endured heavy
rains last month, he said.

The world's third-largest cocoa producer is awaiting the commencement
of its mid crop harvest, which starts from late September to December.
The main crop harvest traditionally runs from April to July.

The yield from the mid-crop is expected to be around 5% lower this
year after floods and landslides in late June damaged plantations,
Zulhefi said. Cocoa is predominantly cultivated in the south, central
and southeast provinces of Sulawesi, which account for around 75% of
Indonesia's total cocoa output.

Meanwhile, Indonesia's coffee production has emerged unscathed from
the recent natural disasters. "The earthquake and tsunami haven't
affected Indonesia's coffee production because that's not a coffee
growing area," said Rachim Kartabrata, executive secretary of
Indonesia's Association of Coffee Exporters, or AEKI.

Robusta constitutes 85% of domestic coffee output, with Lampung, South
Sumatra and Bengkulu provinces accounting for 75% of the total. The
remaining 15% is arabica grown in northern Sumatra, East Java and
South Sulawesi.

Harvesting of robusta coffee in Sumatra runs from March before
tapering off around August, while arabica is harvested from March to
May and again from October to December.

Rachim said shipping activities of coffee are also normal as coffee
shipments are done mainly via Panjang port in Lampung or Tanjung Perak
in Surabaya.

One Lampung-based trader said any disruption due to labor shortage
would be minimal as the current season is nearing its end. "Arrivals
have slowed because this crop is smaller and the season is ending. If
this (the disaster) had happened during the season's peak, there may
have been delays because workers at coffee plantations come from all
over the island," he said.

Indonesia is the world's fourth-largest coffee producer after Brazil,
Colombia and Vietnam, and the third-largest robusta producer after
Vietnam. Responsible for Indonesia's coffee output are mostly 2
million farmers working on small-holdings, each measuring 1.44
hectares in area on average.

---------------------------------------------------------------

Asian Cocoa: Prices Tumble On Steep Futures Losses

SINGAPORE, July 20 (Dow Jones)--Asian physical cocoa prices fell in
the week to Thursday, pressured by losses in international futures,
while the rupiah's appreciation against the U.S. dollar put a lid on
prices, traders said.

Cocoa futures on the New York Board of Trade settled higher Wednesday,
with the most active September contract up $6 at $1,503 a metric ton,
but down $199 from a week earlier.

On the London International Financial Futures and Options Exchange,
the September contract finished up GBP4 at GBP868/ton, but down from
GBP991/ton at last Wednesday's close.

Offers for Malaysia's SMC 1B cocoa beans were quoted at MYR5,300 a
metric ton, down from MYR6,145/ton last week.

Offers for Indonesia's Sulawesi fair-average quality cocoa beans were
quoted at IDR11,200 a kilogram, down from IDR13,150/kg last week.

The steep drop in futures prices and the rupiah's gains muted trading
interest, said a trader in Makassar, the capital of South Sulawesi
province and the main port for Indonesia's cocoa exports.

A stronger rupiah makes dollar-denominated commodities cheaper in
local currency terms, resulting in lower returns to the producers.

The dollar closed at IDR9,170, down from Wednesday's close at IDR9,255.

"The market has turned quiet, the main crop season has ended - very
little beans left for sale," he said.

The world's third-largest cocoa producer is awaiting the commencement
of its mid crop harvest, which starts from late September and ends in
December. The main crop harvest traditionally runs from April to July.

"The main focus now is weather developments. If there are any major
changes, the mid crop will be affected further," he added

The dry season has kicked in, though somewhat later compared to
previous years, providing much relief to trees that endured heavy
rains last month, the trader said.

According to Zulhefi Sikumbang, secretary general of the Indonesia
Cocoa Association, the yield from the mid-crop is expected to be
around 5% lower this year, after floods and landslides in late June
damaged plantations.

Meanwhile, cocoa plantations haven't been impacted by the recent
tremors, which weren't close to the growing areas of Sulawesi, an
island separated from Java by the Java Sea.

Cocoa is predominantly cultivated in the southern, central and
southeastern provinces of Sulawesi, which account for around 75% of
Indonesia's total cocoa output.

A 6.2-magnitude quake rocked western parts of Java Wednesday - two
days after an undersea tremor triggered a tsunami off the southern
coast of Java. While there have been no immediate reports of
casualties in the latest quake, tsunami fears have spurred residents
to flee for higher ground. Monday's tremor killed more than 530 people
and displaced more than 35,000 from their homes.

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Asian Rubber Futures Settle Dn On Weak Sentiment, Supply

SINGAPORE, July 20 (Dow Jones)--Asian rubber futures settled lower
Thursday, as bearish technical charts and rising supply continued to
pressure futures.

On Tocom, weak technical charts and losses in gold futures weighed on
rubber, traders said.

The benchmark December RSS3 contract was down Y1.4 to Y273.8/kg.

The backwardation spread continued to narrow, now at Y10.2, from Y13.6
Wednesday.

A Tokyo-based trader said Tocom is likely to rangebound in the near term.

Although sentiment is bearish and funds are reluctant to make fresh
buys, futures are supported by physical prices, which are much higher,
he said.

"No one wants to buy (the benchmark) at Y275, but there's hesitation
to sell at Y270."

The trader pegs technical support at Y270/kg and resistance at Y279/kg.

Total trading volume fell sharply to 146,655 tons, from 245,990 tons.

Rubber futures on the Osaka Mercantile Exchange settled lower,
tracking losses in Tocom rubber.

The Osaka benchmark December RSS3 contract closed Y2.1 lower at Y274/kg.

Nearby contracts were only slightly down, as stocks in the Osaka
region remain low, a Singapore-based trader said.

The July-December backwardation spread widened to Y22 from Y20.7,
after narrowing in recent days.

Overall, trading volume increased to 6,945 tons, from 5,020 tons.

On the Shanghai Futures Exchange, rubber futures finished higher in
line with copper's rise.

The Shanghai benchmark SCR5/RSS3 September contract rose CNY175 to
settle at CNY23,915/ton.

Total trading volume dropped to 1,123,080 tons, from 1,350,070 tons Wednesday.

"A downward correction is expected as the current price level is still
pretty high. The coming harvest season and sluggish demand will also
be weighing on natural rubber futures prices," said Zhang Yong, an
analyst at Nanhua Futures.

RSS3 futures on the Agricultural Futures Exchange of Thailand closed
mostly lower, tracking losses in Tocom prices, said traders.

The fall in USS3 prices in the cash market on rising latex supply also
pressured AFET.

The most active January 2007 RSS3 contract dropped THB1.1 to settle at
THB90.3/kg.

Overall trading volume declined to 1,475 tons, from 1,850 tons Wednesday.

On the Singapore Commodity Exchange, rubber futures settled slightly
lower inline with Tocom rubber's losses.

The August RSS3 contract shed 1.25 U.S. cents to finish at 239
cents/kg; the August TSR20 contract was the only contract to make
gains, rising 2 cents to 231 cents/kg.

RSS3 trading volume fell from yesterday's high of 8,800 tons.

Asian physical rubber prices ended mixed amid the slight dip in Tocom rubber.

Traders said the market was mostly quiet, with buyers waiting for lower 
prices.

Indonesian producers apparently are unwilling to sell, as Sicom TSR20
contracts are not falling as rapidly as those for RSS3, a
Singapore-based trader said.

Thai prices were quoted by producers and dealers in a wide range.

A Singapore-based trader who quoted lower prices today said Thai
prices are falling because "collectors (middlemen) and farmers are
just letting go of stocks."

September shipments of Thai RSS3 ranged between 240-245 cents/kg,
compared to 245 cents Wednesday, while Thai STR20 was quoted between
240-246 cents/kg, versus 240 cents, FOB Bangkok.

Offers for Indonesia SIR20 for September shipment were higher at 227
cents/kg, from 224.9-226 cents, FOB Palembang.

Malaysia SMR20 for September shipment ranged between 236-240 cents/kg,
compared to 240 cents, FOB Port Klang/Penang.

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Joyo Indonesia News Service
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