Rubber fell for a second day, slipping from a two-month high, as political tensions eased inThailand, the largest producer and exporter.

The contract for delivery in May on the Tokyo Commodity Exchange retreated as much as 0.7 percent to 272.1 yen a kilogram ($2,655 a metric ton) and traded at 273 yen at 11:28 a.m. local time. The most-active contract reached 275.3 yen on Dec. 2, the highest settlement since Sept. 26.

Anti-government protesters in Bangkok said they will suspend street rallies tomorrow to mark the birthday of Thailand’s king, before resuming a push to oust Prime Minister Yingluck Shinawatra.

“Futures fell as they were overbought earlier amid speculation about Thai supply,” said Gu Jiong, an analyst at commodity broker Yutaka Shoji Co. in Tokyo. “It looks like the situation in Thailand is stabilizing.”

Futures for May delivery on the Shanghai Futures Exchange were little changed at 19,440 yuan($3,192) a ton.

Thai rubber free-on-board rose for a fourth straight session yesterday, adding 0.9 percent to 81.95 baht ($2.55) a kilogram, the Rubber Research Institute of Thailand said on its website. 

Source: http://www.bloomberg.com