NR prices continue to be affected more by "non-rubber" factors than the fundamentals of NR supply and demand.  The immediate factors that seem to weigh heavily on this market include:

• Record high oil prices at over $114 per barrel  (See Bloomberg article below.)
• Ever weakening USD vis-a-vis euro and even producing countries currencies
• Weak US economy (whisper the "R" word even coming from the Fed!)
• Bullish trend in commodities overall  (Many investors, stung by losses in less controlled markets, are looking towards commodities as a more solid market to participate in.  Think about the frustration of not being able to even calculate your risk from owning US home mortgages...  In commodities futures trades, you at least have a regulated market with guaranteed warehouse receipt and product in the end that can be accounted for...) 

NR Market Alone

• There is news that cooler, drier weather in SE Asia may delay the resumption of normal tapping.  The Chinese production area of Hainan expects a several week delay at this point. 
• US auto inventories are up 1% and sales were off 1.9% last month. 
• Looking at the charts...  In the past, we've talked to you about flag formations in charts, a technical tool that some traders use to identify a major change in market direction.  It looks as if today's strong close in Singapore signals the development of another bullish trend in the market.

Specific to Consumers

• Physical NR prices were up again overnight with nearby rubber getting harder and harder to come by.   Most producers are out of May and into June already. 
• Rumors of delay of the start of the tapping season coming from all sides
• Advice to consumers - holding out until the last possible moment is not the way to play this market.   You run a risk that your rubber will not be here...