The CBOT Delivery System for Agricultural Futures
An effective delivery system for CBOT agricultural futures contracts is essential for market participants around the world. CBOT delivery procedures reflect the market dynamics for each commodity, and address the primary goal of a delivery system: convergence between futures prices and cash prices. Delivery procedures are not uniform for all commodities, however, particularly since the exchange changed the delivery process for soybeans and corn beginning with contracts that expired in 2000.
One key difference among the major agricultural products traded at the CBOT is that corn and soybean futures contractual obligations can be met with the delivery of shipping certificates, unlike other grain products, which have a delivery system that is based on warehouse receipts.
Another important difference is the geographical zone where delivery can take place. Delivery of corn and soybeans can take place at several locations along the Illinois Waterway. This delivery zone provides a central location in the major corn and soybean production and consumption area. This system uses a location differential to account for the different delivery points throughout the zone. Market participants take this location differential into account when determining whether to make or take delivery.
While the delivery process itself has common elements across the grain complex, there are some differences that market users should be aware of, both in terms of delivery schedule and load-out process.
Delivery Statistical InformationThe Chicago Board of Trade has data available so market participants can closely follow statistics that are important to the cash side of the commodities business.
Additional Delivery Information
Frequently Asked Questions Salient Features of the Illinois Waterway Delivery System