Rubber Jumps to Record High

Today (January 4), the story is rubber. Rubber jumped to a record high of $5.05 per kg, according to the Financial Times.
Rubber is used in tires, condoms and gloves. The price has jumped 25% in two months. Bridgestone, Michelin, Goodyear and Continental have raised tire prices three times in 2010.
Countries around the world are scrambling for rubber. Imports are up 54% in China, 53% in Europe and 49% in South America. Thailand, the world's largest producer, has been besieged with floods, driving production down by one third. Kona Haque, an agricultural analyst with Macquaire in London said: "A combination of aging trees, declining yields, a shortage of labor and rising production costs will prevent producers from quickly making the necessary supply response, regardless of positive prices."
Tire companies are racing to find substitutes for rubber in tire production. Unfortunately, they are a day late and a dollar short. Prices are expected to remain high in the coming months.

(Source: http://www.anrpc.org/html/filedownload.aspx?file=JAN5-2.PDF)