MCX launches futures buying and selling in pure rubber

Leading commodity bourse MCX on Monday launched futures buying and selling in pure rubber.
At current, 4 contracts of rubber futures that can expire in January, February, March and April of 2021 are made obtainable for buying and selling.
The launch of rubber futures comes after robust demand from bodily members together with small-mid sized producers/customers and enormous bodily aspect company homes.
“Given the huge market size for natural rubber in India in terms of production and imports, and its global price linkages and volatility, the launch of rubber futures on the exchange holds significance for industry stakeholders as an efficient hedging tool for managing price risk,” MCX CEO and Managing Director P S Reddy stated in a press release.
Acumen Capital Market made the primary commerce in MCX rubber contact.
The futures contract permits market members to commerce within the rubber of ‘Ribbed Smoked Sheets4 (RSS4)’ high quality for a minimal lot measurement of 1 tonne.
The rubber futures are of obligatory supply logic contracts. They would lastly be settled at expiry on the final enterprise day of the contract month.
The tick measurement (minimal worth motion) for the contract is Rupee 1. Pegged at a minimal preliminary margin of 10 per cent, the value to be quoted shall be for 100 kg as per the ex-warehouse charges, unique of gross sales/GST with supply centre at Palakkad, Kerala.

MCX rubber futures can be found for buying and selling from 9 am to five pm on weekdays.
The new rubber futures on the alternate goals at offering a good and clear worth discovery mechanism that displays fundamentals within the bodily market, each home and world, to the rubber worth chain members together with growers, merchants, exporters, importers and end-users just like the tyre trade.