We have made a major downward revision to our forecast of 2016 NR production this month. This is based on reports that the dry weather associated with the El Niño climate phenomenon has led to sharply lower NR output in South-east Asia, notably Thailand, in the first four months of this year. Although tapping will inevitably pick up as the rains arrive in the next few weeks, it will not be possible to completely make up for the lost output. In some cases, trees have died. We now forecast that NR output will fall by 5% this year, but we may yet have to revise this down further when the extent of the damage becomes clearer. NR production should expand again in 2017, in tandem with higher prices and more favourable weather conditions. Meanwhile, the IRSG has reported that global rubber production grew by 1.6% in 2015. A sharp fall in India’s output was more than offset by rapid growth in tapping in Vietnam, Cambodia and Côte d’Ivoire.