Rubber steadies

Benchmark Tokyo rubber futures ended flat on Wednesday as a weaker yen against the dollar offset lean Shanghai futures. The Tokyo Commodity Exchange rubber contract for October delivery finished unchanged at 191.7 yen ($1.75) per kg, pulling away from a 1-1/2-month high hit on Tuesday. The most-active rubber contract on the Shanghai futures exchange for September delivery fell 135 yuan to finish at 11,605 yuan ($1,820) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for June delivery last traded at 141.70 US cents per kg, down 1.3 cents. The dollar rose to a six-day high against the yen on Wednesday as crude oil prices rallied and pushed Treasury yields higher after US President Donald Trump pulled out from an international nuclear deal with Iran. A weaker yen makes commodities denominated in the Japanese currency cheaper for holders of other currencies. "TOCOM lacked direction with a weaker yen and sluggish Shanghai market," said a Japanese trading source.