Spot Delivery Month

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DEFINITION of 'Spot Delivery Month'

The nearest month when a futures contract matures. The spot delivery month is the month that a futures contract on a commodity becomes deliverable. For example, when the March futures contract for corn expires, the new spot delivery month would be May (the next contract).

BREAKING DOWN 'Spot Delivery Month'

The various futures contracts have different contract months. Corn and wheat futures, for example, have contract months of March (H), May (K), July (N), September (U) and December (Z). Soybean futures, on the other hand, have contract months of January (F), March (H), May (K), July (N), August (Q), September (U) and November (X).

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RELATED FAQS
  1. How do futures contracts roll over?

    Traders roll over futures contracts to switch from the front month contract that is close to expiration to another contract ... Read Full Answer >>
  2. Why do companies enter into futures contracts?

    Different types of companies may enter into futures contracts for different purposes. The most common reason is to hedge ... Read Full Answer >>
  3. What does a futures contract cost?

    The value of a futures contract is derived from the cash value of the underlying asset. While a futures contract may have ... Read Full Answer >>
  4. What are the main risks associated with trading derivatives?

    The primary risks associated with trading derivatives are market, counterparty, liquidity and interconnection risks. Derivatives ... Read Full Answer >>
  5. How can an investor profit from a fall in the utilities sector?

    The utilities sector exhibits a high degree of stability compared to the broader market. This makes it best-suited for buy-and-hold ... Read Full Answer >>
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    Electricity can be traded in the financial marketplace like any other commodity. Electricity futures trading offers an alternative ... Read Full Answer >>

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