Wikipedia:Reference desk/Archives/Miscellaneous/2024 December 17

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December 17

Futures contract

I don't understand finance, so I thought I'd ask. If I buy a futures contract for say a ton of corn at a specific price, and I hold it until the delivery date, will someone literally deliver a ton of corn to me? Thanks. Therapyisgood (talk) 00:04, 17 December 2024 (UTC)[reply]

The contract is likely to read "FOB Kansas City," or something like that. You'll probably have to move it from whatever transportation it is on (train, ship) yourself. Or, arrange (pay for) delivery. DOR (ex-HK) (talk) 01:38, 17 December 2024 (UTC)[reply]

At the delivery date, the current buyer will have become the proud owner of a ton of corn somewhere. The identity of the buyer of the contract almost always changes, so the seller drawing up the contract does not know the identity of the eventual buyer at the delivery date. Therefore, wherever the "somewhere" may be, you as the buyer can be reasonably sure it will not be delivered to your doorstep.  --Lambiam 09:54, 17 December 2024 (UTC)[reply]

Oil futures have even been known to have a negative price, when the producers' local storage was full and demand was low. At that point the buyer of the contract is being paid to take it away. [1] --Amble (talk) 20:30, 17 December 2024 (UTC)[reply]

Most futures contracts are cash-settled and there is no physical transfer of the underlying asset. Stanleykswong (talk) 06:31, 19 December 2024 (UTC)[reply]

True, but this depends on both parties agreeing to a new or modified contract. If the buyer does the unexpected and just sits it out, as suggested in the original question, and also does not agree to a new contract, the seller is obligated to produce the asset to the buyer, even if this means they need to go and buy it on the market.  --Lambiam 10:58, 19 December 2024 (UTC)[reply]

Yes, a futures contract is ultimately for purposes of delivery of the specified contract in accordance with its terms. A standard corn futures contract is for 5000 bushels (although there is also a mini corn future for only 1000 bushels). A bushel of corn (maize) weighs 56 pounds, so at settlement the buyer owns 140 tons of corn (or, for a mini corn future, 28 tons).

But that is not going to be you. You are a retail investor and would trade through a commodity broker, who is probably not going to be willing to accept physical settlement on your behalf. John M Baker (talk) 00:41, 20 December 2024 (UTC)[reply]

Which Political Bloggers are Former Programmers?

Such as Curtis Yarvin and Ruan Xiaohuan. Saedeer (talk) 13:45, 17 December 2024 (UTC)[reply]

Why do you ask that? I don't think the answer to this question can help you. Polygnotus (talk) 01:15, 20 December 2024 (UTC)[reply]

Maybe the OP wants to find out how many other former programmers aren't very bright. ←Baseball Bugs ^{What's up, Doc?} carrots→ 13:46, 20 December 2024 (UTC)[reply]

I was a programmer for a few years, and my blog sometimes touches on politics —Tamfang (talk) 21:46, 29 December 2024 (UTC)[reply]