Few deliveries expected against CBOT May corn, soy futures
27/04/2023 19:12
By Julie Ingwersen
CHICAGO, April 27 (Reuters) - Deliveries against Chicago
Board of Trade (CBOT) May corn and soybean futures should be
light on Friday, the first notice day, traders and analysts said
on Thursday, citing relatively firm cash markets.
Traders expected no deliveries against CBOT May CK3 corn
and May soybean SK3 futures, and zero to 200 May soymeal
SMK3 deliveries. For May soyoil BOK3 , traders estimated
deliveries at zero to 500 contracts.
Expectations varied for CBOT May wheat WK3 deliveries.
Several sources expected 100 to 300 deliveries. But two others
estimated as many as 1,500 lots, citing adequate supplies of
soft red winter wheat, the class represented by CBOT wheat
futures, and weak export demand.
Traders expected minimal deliveries against K.C. May hard
red winter wheat KWK3 futures.
Trade estimates were scarce for deliveries against
Minneapolis Grain Exchange (MGEX) May spring wheat MWEK3
futures, but brokers noted that the May contract fell to a
roughly 12-cent discount to the MGEX July MWEN3 contract
during Thursday's trading session, a possible signal of looming
deliveries. The May contract closed at a 2-cent premium to the
July as recently as Monday.
Delivery expectations against CBOT May rough rice futures
RRK3 were for 150 to 350 contracts. Traders expected zero to
50 May oats OK3 deliveries.
The CBOT reported that 2,389 Chicago wheat futures contracts
and a single K.C. wheat contract were registered for delivery as
of Wednesday night, but commercial grain companies have until 4
p.m. CDT (2100 GMT) Thursday to register additional contracts
for delivery.
Registrations as of Wednesday also included 11 contracts for
corn, zero for soybeans, one contract for soymeal, 598 for
soyoil, 496 contracts for rough rice and 23 for oats. The MGEX
reported spring wheat delivery registrations at 480 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 May futures can issue
intentions to deliver the physical commodity. Traders holding
the oldest-dated longs must accept delivery.
(Reporting by Julie Ingwersen; editing by Diane Craft)
((Julie.ingwersen@thomsonreuters.com; 1-313-484-5283; Reuters
Messaging: julie.ingwersen.thomsonreuters.com@reuters.net))