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Rubber futures on the MCX recorded a modest turnover of ₹8 lakh on debut with just four lots and weak participation from traders.
The contract opened at ₹13,250 a quintal, touched a high of ₹13,952 and a low of ₹12,823 before closing at ₹13,150.
Early estimates from the industry expect the floods in Kerala to have damaged rubber plantations worth ₹900 crore. Given the current situation, rubber prices should have been up on the MCX as supply will be less than demand. But due to lack of participation, the prices are not reflecting the right trend, said an analyst.
Kerala produces an estimated 85 per cent of India’s rubber. The blow to the industry comes just ahead of the peak growing months — September and October — and at a time when it was already battling falling prices after recovering from the drought last year.
MCX had launched a rubber futures contract with Ribbed Smoked Sheets 4 (RSS4) underlying, with a lot size of 1 MT (metric tonne). The contract was with a compulsory delivery option and the quoted price was per quintal ex-Kochi (Ernakulam), exclusive of all sales/GST.
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