May Futures Deliveries: 19 Ethanol Contracts (last Friday)
 
Friday's first day delivery notices of ethanol at the CBOT came and went, quietly.  However, its impact had us conversing on the benefits to commercial firms and the wisdom of Raleigh Wilson, a Chicago cash grain trader and long time authority on CBOT futures delivery mechanics (in the 1970's).  "Always try to let someone else pay carrying (futures to cash position) delivery cost over the weekend."
 
Since it's the short futures holder that decides when (or if) delivery is made, it's often a ploy to deliver on Friday with the expectation that you might find an unwilling long futures holder to receive delivery with no ability to redeliver (liquidate over the weekend) until Monday's opening.  However, the catch is, you may not get the delivered position returned to you, because the long futures holder may have actually wanted the "futures to cash" position.
 
A few corn cargo sales to China last week coupled with funds buying over 40,000 corn contracts was worth 15 cents to corn prices during the past week.  July corn closed at $3.70 yesterday, compared with our expectation for new lows below last week's close on the heels of Greek debt concern and record corn planting pace.