Few March contract deliveries
Delivery intentions against Chicago Board of Trade March corn and soybean futures are expected to be low, as domestic supplies of the commodities remain tight months after a drought-reduced harvest.
Thursday will be first-notice day for March futures, which means it is the first day on which notices of intention to deliver actual commodities against futures-market positions can be received.
Analysts expect deliveries against CBOT March corn contracts on first notice day within a range of zero to 250 lots, with many traders saying they expect only a token few to be released, if any.
Deliveries against March soybean contracts are seen between zero and 100 lots.
If delivery intentions are low for corn and soybeans, it will be seen as confirmation that suppliers think the commodities are more valuable than reflected by current prices, and they prefer to hold on to their stockpiles since supplies are tight.
Stocks of the two commodities are at historically low levels after the worst U.S. drought in decades withered crops across the Midwest last year. Demand has also been strong for soybeans, including for export to China, and expectations for corn demand have strengthened in recent weeks.
Analysts expect zero deliveries against March soybean meal contracts on first-notice day. For soybean oil, they expect a range of 1,800 to 3,150 lots, and for wheat, they expect a range of 900 to 1,500 lots.
As of Tuesday afternoon, no corn contracts were registered for delivery at CBOT-approved warehouses. There were registrations for nine soybean contracts, one soymeal contract, 12,999 soy oil contracts and 1,882 wheat contracts.
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(END) Dow Jones Newswires
February 27, 2013 13:29 ET (18:29 GMT)