Few deliveries expected against CBOT September corn, soy futures
By Julie Ingwersen
CHICAGO, Aug 30 (Reuters) - Deliveries against Chicago Board of Trade (CBOT) September grain and soy futures should be light on Wednesday, the first notice day, traders and analysts said on Tuesday, citing firm domestic cash markets and dwindling supplies left from the 2021 U.S. harvest.
Traders expected zero to 50 deliveries against CBOT September corn and soybean futures, with most traders expecting none. For soy products, traders predicted zero September soymeal deliveries and zero to 100 soyoil deliveries. CBOT rough rice deliveries were seen at 100 to 400 contracts.
Traders offered a wider range of expectations for deliveries against Chicago September wheat futures, ranging from zero to 1,000 contracts. Delivery estimates for Minneapolis Grain Exchange September spring wheat futures also ranged from zero to 1,000 lots.
Traders expected zero to 250 deliveries against K.C. September wheat futures.
The CBOT said no corn, soybean or soymeal futures contracts were registered for delivery as of Monday night, but commercial grain companies have until 4 p.m. CDT (2100 GMT) Tuesday to register additional contracts.
CBOT delivery registrations as of Monday included 2,653 contracts for Chicago wheat, one contract for K.C. wheat, 61 contracts for soyoil, 916 contracts for rough rice and zero contracts for oats. The Minneapolis Grain Exchange reported spring wheat delivery registrations at 1,396 contracts.
Traders closely monitor deliveries. A large number of deliveries tends to pressure the price of a nearby futures contract, while a small number would tend to support prices.
During a contract's delivery period, which lasts two to three weeks, the futures market acts like a cash market. Companies holding short positions in September futures can issue intentions to deliver the physical commodity. Traders holding the oldest-dated longs must accept delivery. (Reporting by Julie Ingwersen)
© Copyright Thomson Reuters 2022. Click For Restrictions - http://about.reuters.com/fulllegal.asp