By Julie Ingwersen
CHICAGO, Nov 29 (Reuters) – Deliveries against Chicago Board of Trade (CBOT) December corn futures should be minimal on Tuesday, the first notice day, traders and analysts said on Monday, citing firm cash markets for the feed grain.
Analysts expected zero or just a few CBOT corn deliveries on Tuesday. The CBOT reported only two corn futures contracts were registered for delivery as of Friday night, although commercial grain companies have until 4 p.m. CST (2200 GMT) Monday to register additional contracts.
Views were mixed on delivery prospects for CBOT December soft red winter wheat futures. Several analysts expected zero to 600 deliveries, but two brokers said wheat deliveries could top 1,000 contracts, noting that 1,180 contracts were registered for delivery with the exchange.
Traders estimated December K.C. hard red winter wheat deliveries at zero to 108 contracts and MGEX spring wheat deliveries at 100 to 1,000 contracts.
Analysts estimated CBOT December soymeal deliveries at zero to 100 contracts and December soyoil deliveries as zero to 500 contracts.
CBOT delivery registrations as of Friday 0#CMEDLVRBL-COMM included one contract for soymeal, 233 contracts for soyoil, 108 contracts for K.C. wheat and two contracts for oats. The Minneapolis Grain Exchange reported spring wheat registrations at 638 contracts.
Traders closely monitor deliveries. Having a large number of deliveries tends to pressure the price of a nearby futures contract, while having 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 December futures can issue intentions to deliver the physical commodity. Traders holding the oldest-dated longs must accept delivery.
(Reporting by Julie Ingwersen; Editing by Will Dunham)
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