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Asian physical rubber were quoted mostly unchanged on Wednesday despite a fall in futures contract prices on the Tokyo Commodity Exchange. Firm demand and limited supply supported physical prices and trading was likely to be busier as those waiting to buy on dips coming come back to the market, traders said.
"More buyers should buy to replenish their stocks when prices drop a little after TOCOM corrections," a Malaysian trader said. Japanese crude rubber stocks in domestic warehouses slid 10.6 percent to 7,511 tonnes, the lowest since October 2005 and near the record low of 7,106 tonnes of August 2005, Rubber Trade Association of Japan data showed on Tuesday. Physical prices were not expected to drop very much despite further TOCOM corrections as rain had cut supply, a trader in Thailand's Hat Yai rubber centre said.

Copyright Reuters, 2007

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