Minimum Deliveries Expected Against January CBOT Soybean Futures


By Julie Ingwersen

CHICAGO, Dec. 29 (Reuters)Deliveries Against Chicago Board of Trade January Soybean Futures SF3 Friday, the first day of reporting, is expected to be thin, reflecting relatively firm domestic spot markets for oilseeds, traders and analysts said Thursday.

Estimates of CBOT soybean deliveries in January ranged from zero to 100 contracts. For soybean meal, deliveries against CBOT January SMF3 futures were also estimated between zero and 100 contracts, while delivery estimates against January soybean oil futures BOF3 were zero to 300 contracts.

For January Rough Rice FRR3 futures, two analysts estimated deliveries of 150 to 500 contracts.

The CBOT said 91 soybean futures contracts were on record for Wednesday night delivery, along with 205 soybean meal contracts, 774 soybean oil contracts and 775 raw rice contracts.

Commercial grain companies have until 4 p.m. CST (2200 GMT) Thursday to register additional delivery contracts.

Traders are closely monitoring deliveries. A high number of deliveries tends to pressure the price of the nearby futures contract, while a low number tends to support prices.

During the delivery period of a contract, which lasts two to three weeks, the futures market acts like a spot market. Firms holding short positions in January futures can issue intentions to deliver the physical commodity. Traders holding the oldest longs must accept delivery.

(Reporting by Julie Ingwersen; editing by Barbara Lewis)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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