Scant deliveries seen against CBOT Sept corn, soy futures; wheat, oats eyed

By Julie Ingwersen

CHICAGO, Aug 30 (Reuters)Deliveries against Chicago Board of Trade (CBOT) September corn and soy futures should be light on Thursday, the first notice day, traders and analysts said on Wednesday, but soft cash markets could spur moderate deliveries against wheat and oat futures.

Traders predicted zero to 500 September corn CU3 deliveries, with most expecting none. Traders expected zero to 200 September SU3 soybean deliveries and zero to 100 deliveries against soymeal SMU3 and soyoil BOU3 futures. CBOT rough rice RRU3 deliveries were seen at zero to 100 contracts.

For wheat, most traders expected 200 to 1,000 deliveries against CBOT September WU3 futures, along with zero to 200 deliveries against K.C. KWU3 hard red winter wheat futures.

For the thinly traded CBOT oats market, traders predicted zero to 400 deliveries against September OU3 futures, noting that 448 contracts were registered for delivery with the exchange.

CBOT oats futures surged on Tuesday after Statistics Canada projected the smallest Canadian oat crop since 1991. But plentiful old-crop supplies and weak demand from feed makers have pressured cash oat markets, raising the prospect of deliveries, traders said.

CBOT data showed that no corn, soybean or soymeal futures contracts were registered for delivery as of Tuesday night, but commercial grain companies have until 4 p.m. CDT (2100 GMT) Wednesday to register additional contracts. Registrations included 67 lots of soyoil, 1,368 for CBOT wheat and 147 for K.C. wheat.

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; Editing by Andy Sullivan)

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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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