Rubber Case Study

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ABSTRACT Rubber is an elastic hydrocarbon polymer that is derived from latex of some plants. The collection of the latex is called tapping. Rubber tree or Para tree is Hevea brasiliensis which is from family Euphorbiaceae and is the most important source of Natural Rubber. It originates from Amazon forests, though it derives its name from Para, one of the states of Brazil. In a competitive environment, where supplies are uncertain and prices frequently move up and down, there is a need for protection from losses. There are various ways to cope with this problem. Apart from increasing the stability of the market, various participants in the farm sector can better manage their activities in an environment of stable prices through derivative markets. Futures trade assumes significance in a …show more content…

The years 2008 and 2009 were really beneficial for Rubber producers of India. But during the post recession phase the Rubber prices on monthly basis was in downturn. The condition was most vulnerable during the 2014. Table 4 Monthly price volatility of Rubber: Spot and Futures market. Year Daily Price volatility Future Spot 2004 6.93 7.28 2005 7.32 8.21 2006 14.2 13.7 2007 9.70 8.31 2008 7.36 6.31 2009 8.97 9.49 2010 6.48 6.39 2011 4.23 4.60 2012 6.22 6.20 2013 5.64 5.81 2014 5.53 6.02 Source: compiled from Source: Rubber Board,

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